However, Reliance Industries stocks looked up at the kerb markets. According to market sources, the company issued a letter to the BSE stating that the news of the CBI raid was a mere rumour. The stock was quoted at Rs 120.50 at 8 pm against the official close of Rs 119.50 on the BSE. Similarly, ITC and SBI were also quoted at a premium of Rs 1/2 at Rs 715 and Rs 162 respectively.

News of the raid at the premises of Reliance conducted by CBI on Thursday and the simultaneous searches in some premises of Reliance Industriesin Delhi and Mumbai in connection with a case registered against its group president V Balasubramanian under the Official Secrets Act, saw big time bear-operators rush to take fresh short positions at the counter.

While market was agog with rumours of the company circle having played a vital role in supporting the stock at the lower levels, market participants also explained that a portion of these deals were routed through FII broking outfits. Market observers spelled out the names of Morgan Broking and SSKI.

However,these rumours could not be confirmed. The interesting feature at the counter was the substantial jump in the volumes especially during the last half an hour of trading on both the local bourses. At 2.55 pm, while the volumes at the counter on the NSE was about 1.4 crore shares, it shot up to a high of 1.89 crore at 3.30 pm. Similarly, on the BSE the volumes shot up from less than 90 lakh shares at 3 pm to a high of 1.27 crore shares at the close of the session. On the negotiated segment,the stock registered a volume of 10,000 shares (cross deal) at Rs 123.10.

According to brokers, the volume jump was accompanied by a zig-zag movement of the stock price. The stock opened on the BSE on a firm note at Rs 121.30, reflecting the presence of huge long positions built at the counter. The long purchase positions of Reliance on Wednesday was pegged at 59 lakh shares, while the short positions were 16.5 lakh shares. In the second phase of the session, the stock was hammered to a low of Rs 119 but recovered afresh to touch an intra-day's high of Rs 123 on account of short covering.

On the BSE, the volumes on the counter graduated in a phased manner from 24.46 lakh shares at 11 pm to 36 lakh shares at 12 pm, and a whopping 62 lakh shares at 12.30 pm, 69.54 lakh shares at 2 pm and 88 lakh shares at 2.30 pm. On the GDR front, the stock remain listless to trade at $ 6.18.