Yet, select side counters edged higher.

Some major losers in the small-cap, mid-cap and penny stocks segment were BSL (down 13.5% to Rs 48), Zenith Fibre (down 11% to Rs 24.55), Webel SI-Energy (down 10% to Rs 258.85), SKS Ship (down 10% to Rs 33.55), Austin Engineering (down 10% to Rs 54.15), Patel On-Board (down 10% to Rs 84.85), Waterbase (down 10% to Rs 11.03), IFSL (down 10% to Rs 23.50), MTZ Polyfilms (down 10% to Rs 7.12), Eltrol (down 10% to Rs 1.84), Andhra Cement (down 10% to Rs 39.40), and PG Foils (down 9% to Rs 41).

Market breadth was weak. There were 1,962 losers on BSE as compared to 408 gainers. 24 stocks were unchanged. Losers outpaced gainers by a ratio of 4.8:1.

Yet, the breadth improved, as, just a while ago, losers outpaced gainers by a ratio of over 7:1.

Penny stocks have been beaten down by media reports that the regulators were probing the recent surge in these stocks. A flush of penny stocks had risen sharply in the past few days.

The last three days witnessed a broad-based fall in small-cap, mid-cap and penny stocks. In the last two trading sessions, between 21 September and 22 September, the BSE Small Cap index tumbled 693.92 points or 11% from its close of 6,273.17 on Tuesday (20 September). The BSE Mid Cap index flopped 353.31 points or 8.1% in those two trading sessions.

The small- and mid-cap segment of the market had seen a solid rally over the past few months.

Meanwhile, stock exchanges have tightened margin requirements and placed restrictions on trading in many stocks. About 500 stocks will attract 100% upfront margins on BSE from 26 September 2005. On the other hand, NSE has clamped down on bank guarantee norms stating that guarantees will have to be mandatorily backed assets and cannot be counter-guarantees.

NSE has also put all trade to trade stocks under uniform 5% daily circuit filters with effect from 21 September 2005.