FIIs, who have made net investments of about Rs 3,000 crore in the current month, were heavy buyers in key cyclical stocks while slowing down their purchases in new economy sector leading to a minor correction. The FIIs presence in old economy counters prompted operators to go for all-round buying in cyclicals. Domestic financial institutions (DFIs), however, availed the opportunity to book profits in these shares, which they had accumulated earlier at lowest levels.

The BSE Sensex opened firm at 4247.45 and later moved in the intra-day high and intra-day low range of 4278.55 and 4223.56 respectively before closing at 4267.11 as against last Friday's close of 4194.46 points, netting a gain of 72.65 points. S&P CNX Nifty was also up by 19.90 points to close at 1348 as compared to previous close of 1329.10 points.

Select software counters, that had scored impressive gains last week, encountered heavy offloading and shed part of these gains while a few others trimmed their early advances, said the dealers. Dealers were confident of a sustained rally in the Sensex if it had crossed the strongest resistance level of 4274, saying the market was still in a bull grip and could continue its upward march once this level was broken.

The cyclicals like Bajaj Auto gained by Rs 20.25 to 288.35, Bhel was up by Rs 3.90 to Rs 161.05, Cipla by Rs14.85 to Rs 1,095.90, Dr Reddy by Rs 20.95 to Rs 1373.40, Grasim by Rs 11.35 to Rs 326.15, GACL by Rs 4.50 to Rs 173.70, HPCL by Rs 7.60 to Rs 173.20, L&T by Rs 2.95 to Rs 236.30, MTNL by Rs 8.70 to Rs 177.80, Ranbaxy by Rs 22.25 to Rs 645.60, Rel Petro by Rs 3.20 to Rs 63.50, RIL by Rs 5.95 to Rs 374.70, Telco by Rs 4.60 to Rs 95.60 and Tisco by Rs 2.60 to Rs 129.65. Among the new economy stocks which shed their earlier gains and closed the day with minor gains was Himachal Futuristic, spurted by Rs 61.75 to Rs 1273.05. Satyam Computers was up by Rs 9.80 to Rs 428.05, Global Tele by Rs 16.80 to Rs 750.85, Infosys Tech by Rs 64.30 to Rs 6,843.20 and Zee Tele gained by Rs 6.70 to Rs 267.20. However, ACC eased by Rs 1.10 to Rs 160.95, Castrol by Rs 4.20 to Rs 270.95, ITC by Rs 3.05 to Rs 913.70 and frontline IT stocks, which closed the day with loses, were NIIT, which shed Rs 35.60 to Rs 1,723.85, SSILtd was down by Rs 36.55 at Rs 1,459.80 and Wipro was down by Rs 30.45 at Rs 2,883.45.