The 30-share sensitive Index recovered from the day's low of 3,237.18 points to close at 3,287.53 points, registering a net gain of about 4 points. According to brokers, the initial dip in the indices was purely on account of the selling thrust building up on the BSE as NSE was closed for about 2 hours on technical grounds. Interestingly, the second phase of the trading session saw the indices recovering substantially. The gain in stock prices towards the lastphase of the trading session was partially attributed to the huge auction scheduled at the counters of speculator favourites like MTNL, Reliance, Digital Equipment, Dr Reddy's and Ranbaxy Labs.

"The thrust of the Economic Survey is, of course, on fiscal prudence. Some tough measures are expected in the budget to tackle fiscal deficit. Market will react positively to a budget that is tough and, at the same time, credible. The credibility of the announcements in the Budget will depend on how the government manages to get support for its measures," said K Ramachandran, head of research, Birla Marlin Securities. "The market today was reactive to political uncertainty at the Centre rather than on the signals emitted by the economic survey. Taking cue from economic survey, market was agog with rumours in the morning that rupee is set to witness a sharp devaluation," he added.

After software and telecom sector it was the turn of pharma sector representatives to face the necessary correction. Frontline pharmastocks like Glaxo, Burroughs Welcome, Merind, Smithkline Pharma and E-Merck were hammered down by over 6 per cent on an average. Similarly, with punters building a view that the results to be announced by FMCG majors would not be in line with their expectations, a similar sell off was witnessed in Cadburys and Nestle. However, institutional support at the refinery counters provided a fresh lease of life to their representatives on the bourses. While Cochin Refinery and HPCL were locked at the upper limit .