The selling pressure was severe on a number of heavyweights -- Satyam Computers down 8.86 per cent and closing at Rs 307, Zee falling sharply by 10.91 per cent at Rs 303.85, a new 52-week low. Infosys was another stock from the index list which slid down -- by 3.25 per cent to Rs 6,241.However, in a depressed market the Tata Power scrip was in the limelight, gaining by 8.31 per cent to close at Rs 69 on media reports that the company was to buy Gujarat PowerGen.

The BSE Sensex opened lower in the morning and slipped further below the 3,600-mark and touched the day's low of 3,545 before some buyinng in Old Economy stocks like Hindustan Lever, Tisco, Telco lifted the index.

The Sensex closed down by 71 points at 3,593.63, an 18-month low. On the NSE also there was no respite despite being the first day of settlement. S&P CNX Nifty fell by 22 points to close at 1,136.

Dealers said the mood in the market is very bearish and there are no buyers even at such low levels as with some of the blue-chip stocks quoting at their historical lows.

Active selling by some of the top US-based FIIs is believed to be the key factor behind the fall. Sources in the market said some of the FIIs which are actively selling in the market include Capital International and Skrodders. Both these funds have sold heavily at the Zee, Satyam and Infosys counters in the last eight-ten days.

Another interesting part of Wednesday's trading was that Reliance Industries' stock fell below the indicative buy-back offer price of Rs 303. The scrip had even touched a low of Rs 297 but at these levels some buying lifted the stock and it finally closed at Rs 298.3, a drop of 1.13 per cent from Tuesday close.

The number of index stocks that touched their 52-week lows included ACC, ICICI, L&T, Mahindra & Mahindra and others.