Institutional participants - both domestic and FIIs - were reportedly net sellers on the BSE. On the first day of the trading cycle on the BSE, FIIs were net sellers to the tune of Rs 1 crore, while domestic institutions sold stocks worth Rs 20 crore. However, on the NSE, FIIs were net buyers to the tune of Rs 2.86 crore, while domestic purchases were a meagre Rs 55 lakh.

Market was agog with rumours that FII purchases were centered around the info-tech counters considering the last few days for the purpose of reporting the yearly NAVs of their respective funds.

Interestingly, the net outstanding positions on the BSE has registered a sharp rise. It may be recalled that on Thursday evening, the outstandings stood at Rs 660 crore. On Monday evening, the positions howeverwitnessed a rise to close at Rs 700 crore, with the long positions pegged at a high of Rs 1,020 crore. The short positions of the market was placed at a low of Rs 328 crore.

While market was agog with rumours that a great deal of institutional purchases at the info-tech counters were in the form of ware-housed deals, certain limited orders placed by Jardine Fleming and Morgan Stanley were also rumoured about during the mid session. These orders, according to market sources, were placed at the counters of Pentafour Software, ITC and Telco.

``The index is portraying a mirror image of the collapse registered at the 4,300 levels. It is technically poised for a rally to cross 3,900 points by February end,'' said Neel Dalal, a BSE broker. Among the info-tech stocks, Pentafour Software, BPL, Aptech, Mastek, CMC, Silverline and Tata Telecom were locked at the day's high on the NSE. According to market observers, Pentafour Software provided the much awaited trigger point to the market. While the stock was alreadyquoting at a premium of over 5 per cent to its day's low, the news of the company's meet added fuel to the rally. After the announcement which was flashed by the exchanges at around 2.15 pm, the stock surged by over 8 per cent to be locked at the day's circuit level of Rs 717.15 on the NSE. Market was agog with rumours that the company may consider a bonus issue as well, despite the fact that the company in its letter to the exchanges did not mention about the bonus issue. Pharma counters however continued their downward march. Pfizer, Novartis, Burroughs Wellcome, Rhone Poulenc and SmithKline Consumer Healthcare registered substantial price erosion during the session on the BSE. While speculative activities were concentrated at counters like Satyam Computers, Zee Telefilms, Telco and HDFC Bank, these stocks registered marginal decline in the kerb session.

Among the auto stocks, Telco touched a high of Rs 176.10 to finally close at Rs 172 registering a net gain of 3 per cent. At the kerb, Telco was quotedat Rs 171.