Mumbai: Despite a sustained rally in Public Sector Undertaking (PSU) shares, the SENSEX fell by 16.91 points to close at 3317.01 at the Bombay Stock Exchange (BSE) on February 4, driven down by a heavy sell-off in software counters.

Shares of PSUs, including banking stocks, were in keen demand right from the onset of business and were the front runner due to good buying support from local funds as well as speculators on hopes of major push on the disinvestment front, dealers said.

However, new economy shares reeled under selling pressure due to reversal of trend in the tech-heavy NASDAQ Composite Index that was down by 22.77 points on February 1, they added.

Cement scrips dipped sharply following news of steep fall of nearly Rs 25 per bag in the Western region.

Select pharma counters also declined on profit-taking by institutional investors.

Reflecting the trend, the BSE-30 share index opened slightly better at 3336.17 and moved up further to a high of 3353.29 on good buying support.

PTI