In the meanwhile, the 30-share BSE Sensitive index closed at 2,963.45 points registering a marginal gain of 0.95 points. Amidst institutional participation and short covering, the index continued to be range bound to move in the band of 2,953.55 points and 2,974.66 points.

The market was agog with rumours that FIIs like Morgan Stanley and James Capel placed huge buy orders at the Telco counter even at the day's high. Similarly, domestic institutions like SBI Mutual fund and Canbank Offshore fund were also rumoured to have bought large chunks ofTelco during the mid session. Interestingly, despite being the last day of the trading cycle on the BSE, domestic and foreign institutional participants were reportedly net buyers. While, FII net inflows were pegged at Rs 4 crore, that of domestic institutions was at a high of Rs 15 crore.

It is learnt that most of the institutional business was centred at the counters of Telco, Tisco and select pharma counters like Reckitt & Colmann. On the negotiated segment of the BSE, Telco witnessed a negotiated deal of 10,000 shares reported at the price of Rs 165. Another punching error at the Castrol counter saw a cross deal of 5,000 shares being reported at 594.50, while the stock was quoted in the band of Rs 690 and Rs 700, the intraday's low and high respectively. The deal, according to market sources, was transacted by a leading institutional brokerage house.

Interestingly, a leading Calcutta based punter was reportedly active at the counters of Denso India, Float Gas, HDFC Bank and Hero Honda. Most of thesestocks witnessed huge chunks being traded at the negotiated segment of the BSE.

While December ending has always been perceived as the most crucial phase for the FIIs who need to report their NAVs, market was agog with rumours that Thursday was the last day for Morgan Stanley to report its NAV. Market sources highlighted that this rumour led to a fresh expectation that the FII would buy at the software and pharma counters.

Pharma counters, however, continued their downward move for the second consecutive day after Parliament adjourned without clearing the patents bill. However, tea industry representatives moved higher on the back of institutional support. While Tata Tea registered a gain of 4.3 per cent to close at Rs 355, Jayshree Tea and Assam Frontier were locked at the day's high of Rs 85.20 and Rs 126.25 respectively.

The undertone in the market, however, continued to remain at the lowest ebb, with very few quotes in the kerb markets.