The benchmark DSE index (base 1983), riding on the positive note, opened the week on a buoyant note to close at 878.24 points, up 39.97 points from the previous close of 838,27 points.

The absence of any discomforting news on the Kashmir front enthused investors, who purchased huge amount of index-linked shares at the curent low prices and boosted sentiments.

The 190 point surge at the Bombay Stock Exchange further aided the sentiment here. The buying by local and foreign funds triggered heavy short-covering by local speculators. Marketmen said sentiments had improved with reports that India has accepted Pakistan's proposal to send its finance minister to India to defuse tension in Kashmir.

Foreign institutional investors were seen to be very activeindex stocks such as Reliance Industries, Mahanagar Telephone Nigam Limited, Larsen and Toubro, ACC and State Bank of India. Share prices were on the rise from the start of trading session itself, the traders added. They further feel that the sharp fall in share prices over the last week also triggered bargain-buying by foreign funds. Buying was seen across-the-board in blue chips and prominent second-line stocks.

Pentafour led the rally in the specified category shooting up by Rs 76.60 at Rs 1106.60 followed by Satyam Computers.