However, information technology stocks, except Infosys Technologies and Wipro, continued to seek lower levels on nervous selling by operators and some foreign funds The Delhi Stock Exchange benchmark index recovered by 12.82 points to close the day at 951.87 points. Stock brokers said reports that the government had assured that there was no proposal to revoke or modify the tax treaty with Mauritius helped market sentiments to improve.

They said intervention by FIs particularly Unit Trust of India (UTI) which made sizeable purchases and a few IT sector stocks also managed to slow down the falling stock prices to a certain extent.

IT, telecom and media sector stocks, however, suffered another setback on selling pressure after fall of nearly 74 points in the high-tech Nasdaq composite index last evening, they added. "Though, market sentiments improved, recovery was restricted and confined to cyclical stocks," said a DSE broker "Today's recovery was mostly attributed to FIs' sizeable purchases," felt another stock broker. FIs made sizeable purchases at Associated Cement Co, L&T, SBI and a few other MNC stocks.

Petrochemicals giant Reliance Industries after bouncing between Rs 277.55 and Rs 311.05 on hectic alternate bouts of buying and selling finally ended marginally higher at Rs 298.15 over the previous closing of Rs 297.35.

Steel major stocks Tata Steel on sizeable purchases by FIs ended Rs 5.25 higher at Rs 118.50, while Telco shares finished Rs 3.50 higher at Rs 131.50.Cement sector stocks such as Associated Cement rallied by a whopping Rs 10.95, or 8 per cent to close in the upper end of circuit-filter at Rs 154.95 while Grasim Industries gathered Rs 22.20, or 7 per cent to Rs 347 largely on frenzied purchases by FIs. L&T stocks too found some support and gained Rs 4.85 at Rs 279.70. Multi-nationals and consumer goods major Hindustan Lever stocks after yesterday's steep fall rebounded to close Rs 113.50 higher at Rs 2520 on revival of buying by some foreign funds but tobacco major ITC stocks met with selling and fell Rs 20.55 at Rs 697.

Coming to IT segment, stocks like Satyam Computer at Rs 3452.70, Silverline Industries at Rs 617.80, SSI Ltd at Rs 3457.50 and DSQ Software at Rs 1277.60 were locked in the lower end of circuit-filter.