The recovery, according to market experts, was partially because of the depreciating rupee and attractive valuations of select index-based stocks.

"There was less selling pressure from the FIIs today and thereby possibly lesser need for domestic institutional support," said Maulik Sharedalal, director of Kaji & Maulik Securities. Adding further he stated that the total institutional activity seemed thinner on account of long positions being liquidated on Monday. Despite the fact that it was the end of account on the NSE today, there was no downward pressure on prices.

Today's trading saw Hindustan Lever attracting backwardation charge of Rs 22 or 1.25 per cent on account of the wide discrepancybetween the closing price on BSE and NSE. The scrip rose by 5 per cent to close at Rs 1,605 on the NSE.

According to market sources, FIIs like WI Carr, Alliance Capital and Morgan Stanley were rumoured to have picked up Carrier Aircon, Nestle, NIIT, Hindustan Lever and Philips India.

Sources, also highlighted the interesting fact that Philips has again caught the fancy of Morgan Stanley at the same level of Rs 85 where the FII had influenced its steady upward move in April, before it touched a high of Rs 150 levels. The stock was traded at the lower end of the price band on the NSE at Rs 85.45.

A prominent feature of the day was the FII investments in select infotech stocks like Infosys Technology, Satyam and Pentafour Softwares.

"FIIs have now preferred to filter out their exposure in the infotech stocks," said a fund manager with a leading FII brokerage house.

Continuous bouts of sales at the counters of Silverline Industries, HCL HP and Square D Software provided an insight into the FII strategyof restricting their exposure purely on the basis of fundamentals.

While Infosys Technology was locked at the upper end of the price band at Rs 2,119.95 on the NSE with a phenomenal volume of 60,500 shares, on the BSE the stock closed at Rs 2,156.

Market analysts cited the falling rupee as the main reason for the infotech and pharma stocks look attractive.

Buying interest at the FMCG counters like Britannia, Nestle and Ponds was also explained on the basis of the budgetary sops and the depreciating rupee. Ponds registered a sharp gain of 8.13 per cent on the NSE to close at Rs 1,167.80 on the NSE while on the BSE the stock moved with a price spread of Rs 80 to touch an intra-day's high of Rs 1,160.

Among the pharma stocks Ranbaxy surged over the crucial benchmark of Rs 600 on news that the company has decided to consider a bonus issue in the ratio of 1:1 besides declaring a dividend of Rs 10 per share. During mid-day session the stock flared up to touch an intra-day's high of Rs 633, to finally closeat Rs 619.50.Modi Xerox, a non specified group stock hit the upper end of the price filter on NSE to be locked at Rs 70.25. Trading in the equity shares of Modi will be suspended on the BSE from June 15, on account of non-compliance with the listing agreement of the exchange.

Interestingly, stocks of Videocon International, Videocon Appliances and BPL were hammered down on the local bourses. While both the Videocon stocks attracted circuit filters registering a fall of over 10 per cent, BPL slumped by 8 per cent.