Mumbai: Equities drifted downwards and the SENSEX lost another 20 points at close in dull activity on the Bombay Stock Exchange (BSE) on March 22 as operators pressed fresh sales in a bid to lighten commitments ahead of introduction of T+3 settlement system from April 1.

Foreign institutional investors (FIIs), which also have slowed down activity, reportedly were consistent net buyers in second-rung stocks with their focus mainly on low-priced counters. Indian financial institutions, however, were conspicuous by their absence.

The BSE Benchmark 30-share index started on an optimistic note at 3,555.38 but later lacked lustre with speculators unhappy over the decision to start T+3 system which, in turn, will reduce the period for pay-in and pay-out, market sources said, adding, "It will literally force them to take delivery of shares."

The SENSEX later fluctuated in an extremely narrow range and closed at 3,516.11 as against a close of 3,536.26 on March 21, netting a loss of 20.15 points.

The broad-based BSE-100 Index also eased by 7.95 points to 1,722.45 from previous close of 1,730.40.

The sentiment was partially affected by fluid political situation in the country and fear of negative impact on the volume of the proposed T+3 system.

Meanwhile, the NASDAQ Composite Index moved further up by about 36 points on March 21 night while the Dow Jones Industrial Average closed in the red, off 21.73 points.

PTI