Reacting to reports that the rolling settlement is likely to be delayed beyond November, speculators who had lightened their outstanding positions in the past couple of days, made fresh commitments leading to a moderate price rally.

However, a late denial by the BSE that it has not asked for any extension of time beyond the SEBI's stipulated time frame for its introduction and that the regulator had not discussed about the likely date in yesterday's meeting triggered selling pressure, market sources said.

They said speculators pressed sales in a bid to reduce the outstanding holdings before the new system of settlement is implemented. As per the Sebi's deadline, the new system is expected to be introduced by the end of the current month.

Initial firmness was also attributed to a positive turnaround in the Nasdaq Composite Index which rose by 67.26 points to close at 3,523.09 yesterday.The Sensitive Index opened moderately up at 4,177.09 and firmed up to a high of 4,197.39. But the late reaction pushed it to close at 4,115.62 as against yesterday's close of 4,160.41, a net loss of 44.16 points. The BSE-100 Index dipped by 26.59 points to 2,069.78 from previous close of 2,096.37. (PTI)A short trading session till 2.00 pm tomorrow to accommodate badla trading later due to a public holiday on Saturday for Dassera forced operators to square up positions on the penultimate day of current account, dealers said.

In the specified group, 113 counters including 25 index based shares registered moderate losses while 24 others closed with marginal gains.The market leader Satyam Computer dropped by 13.85 to 483. Infosys Tech was down by 115.95 at 7486.85, Global Tele by 41.75 at 1077.00, Himachal Futur by 37.50 at 1269.15, Pentamedia by 25 at 417, Bajaj Auto by 6.10 at 312.75, BHEL by 2.25 at 105, GACL by 6.15 at 152.85, HPCL by 2.10 at 108.85, Hindalco by 11.35 at 815.90, ITC by 1.65 at 722.45, L&T by 5.10 at 165.80, M&M By 8.85 at 178.90, RIL by 4.50 at 340.20 and Zee Telefilms by 17.35 to 432.30.

However, MTNL improved by 2.55 to 122.25, Dr Reddy by26.05 to 1310.45 and Ranbaxy by 18.85 to 655.75.