MNC, pharma and software counters once again contributed largely for the change in the mood of market players. While software counters allowed the investors to enter at a corrected phase, the MNC and pharma counters promised attractive returns in the long term.

Institutions continued to be net buyers on the bourses, with FIIs net purchases pegged at Rs 4 on the BSE while on the NSE it was pegged at Rs 18.39 crore. However, domestic institutions sold a huge chunk of over Rs 34 crore on the BSE. The recovery made at the bourses, according to sources, was used as a means to book profits by local institutions.

It is learnt that FIIs placed huge buy ordersat the index based counters of Hindustan Lever, NIIT, Bata India, Cipla, Hero Honda, HDFC, Pfizer and NIIT.

The market was rife with rumours that leading brokerage houses like ABN Amro, Kotak Securities, Motilal Oswal and DSP Merril Lynch placed huge buy orders at these counters, executed in the negotiated segment of the BSE.

FIIs were also buyers at the counters of Kirloskar Cummins, Telco, MTNL, Pentafour Software, Infosys Technologies. It is learnt that most of these deals were reportedly warehoused transactions.

``Market has portrayed a decent performance today. Infact it should be recalled that we always believed that the market had priced in the political uncertainities and was geared up to either remain steady or move upwards. Today's rise does not come in as a surprise for us,'' explained S Subramanium, director of Warburg Dillon Read.

However, market participants continued to be worried on the clearance of the Insurance bill. ``The Insurance bill should decide the future trend of themarkets,'' said a dealer with Rathi Global, a local brokerage house.

It is learnt that a great deal of warehousing was prompted by the attempts made by FIIs to prop up the NAV of their funds on account of December year end considerations.

Interestingly, the sharp gains made at the counters of Bhel, Infosys Technologies, Novartis, HDFC and MTNL were identified as the stocks held by Morgan Stanley Growth Fund and hence, great deal of warehoused transactions were reported at these counters.