The DSE index which remained in negative territory in early stages on persistent selling by operators, recovered to close 12.61 points higher at 877.48 points on the back of notable recovery in selective index-related stocks.

They said activity was highly volatile with several stocks after locking at the end of 12% downward circuit filter at the initial stages on sustained selling, later, bounced back at a rapid pace to hit upper end of price bands on funds' buying followed by huge short-covering by bear operators,trading commenced on a distinctly weak note on major sell-off by FIIs and other players ahead of the expected rise in US interest rates on Tuesday.

However, domestic financial institutions which remained sidelined in early trading despite all-round selling which pulled stock prices down to recent low levels, made aggressive purchases forcing bear operators to cover up their short positions.

Meanwhile, carry forward rates (badla ratres) were fixed at an average rate of 7% per annum but did not had any positive impact on the market sentiments.Infosys Tech which plunged to Rs 6150 at the initial stages on persistent selling by several FIIs and domestic players, made a sigificant recovery towards the middle of session on the back of emergence of buying at prevailing lower levels to close Rs 51 higher at Rs 6901.

Satyam Computer also rebounded to close Rs 120 higher a Rs 2880 while Silverline recovered by Rs 32.15 to close at Rs 389.90 after crossing Rs 400.SSI stocks after remaining distinctly weak for the major part of the session on sustained selling by nervous operators, reversed an early trends after FIIs made sizeable purchases and finally ended Rs 167.75 higher at Rs 2460. NIIT and Rolta also regained firmness.

Telecom major Global Telesystems and Himachal Futuristic managed to reduce their earlier losses.

Zee Telefilms remained most volatile stocks through out the session on hectic selling and buying and closed Rs 42.60 higher at Rs 524. Amongst cyclicals, Reliance Industries after moving sideways on hectic buying and selling finally finished Rs 2.60 higher at Rs 319.60 while Tata Steel recovered Rs 2 at Rs on domestic financial institutions buying.