Market participants feel that it will really be some time before a recovery can be witnessed in the markets. The sensex opened higher at 2,900.15 and closed at 2,886.91 over its previous close of 2,862.55 while intra-day the sensex gained 37.45 before closing with a net gain of 24.36 points. On the National Stock Exchange, the S&P CNX Nifty was up 7.95 points at 842.50 from its previous close of 834.55.

According to provisional figures collated by NSE, net FII sales were to the tune of Rs 9.62 crore, while the net sales by domestic institutions was Rs 3.58 crore. On theBSE, FIIs were net sellers at Rs 11 crore, while domestic institutions were net buyers at of Rs 22 crore. ``In tandem with the recovery in world markets, shares on the BSE moved up after the Dow Jones index reversed losses overnight. It is going to be a wait and watch scenario before the investors come back to the ring", said Dilip Bhat, vice president, Shailesh Merchants Brokers. On Tuesday, the Dow Jones Industrial Average ended 3.82 per cent higher at 7,827.43 points. "The limited recovery is basically due to players making cautious purchases on the back of the recovery in regional markets that traced the overnight Wall Street gains", said Ajai Doshi, a BSE broker.

"Investors are postponing their purchase decision as they are confused whether to purchase in this falling market. Thus, the sentiment is mixed with players adopting a wait and watch attitude", said Chetan Shah, of Asian Markets Securities.

The market had witnessed a lot of activity in Dr Reddy's Lab and Zee Telefilms, both from domesticfunds and FIIs. Canbank off-shore fund is rumoured to have bought Zee Telefilms. The GMO Trust fund is reported to have bought HCL Infosys, the price of which went up from Rs 212 to Rs 225. Similarly, a lot of buying was witnessed in the scrip of Corn Products with interest shown by both MFs and FIIs. Morgan Stanley is reported to have sold a big chunk of B2 group stocks and has been acquiring ITC over the past one week. Enkay Texofoods is also picking up due to good results. Tata Chemicals closed at its 52-week low of Rs 97.10.

The hammering witnessed in software stocks slowed down as interest in the sector saw some Indian mutual funds buying in a few counters with most of the stocks registering gains. Satyam Computers closed at Rs 463.50 over its previous close of Rs 451.25, Pentafour Software closed at Rs 595 over its previous close of Rs 583.25, Infosys Technology at Rs 2,472.25 over its previous close of 2,448.