According to market sources, most of the leading mutual funds have started propping their stock values by adequately providing meeting the demand side as and when supply flows into the bourses. Market sources also hinted at the crucial day of September 30 where the mutual funds will need to declare their six-months performances.

Reflecting the strong undercurrent in the market, key stocks like Satyam Computers, Zee Telefilms and Castrol registered handsome recovery on the local bourses. Pharma and info-tech counters continued to hog the limelight, as mutual funds rushed to salvage the lost values of their exposure in the stock markets. Shortcovering towards the last phase however, saw the pivotals recover on the NSE. The NSE closed at 4 pm today on account of the sun outage problems. Rumours once again played a vital role in influencing the price pattern of stocks like Zee Telefilms, Nocil, Castrol, German Remedies, BPL and Bank of Madura. While Zee Telefilms closed at a new high of Rs 732 and was quoted at a premium of Rs 17 at the kerb markets, Nocil was locked at the upper limit of the price band at Rs 34.60, with a net outstanding buy order of 5,750 shares reported on the NSE. Bhel attracted a backwardation charge of over Rs 14 at the carry forward session on the BSE on September 26.

According to market sources, considerable amount of short positions have been created at this counter which explains the increasing backwardation at the counter. Market was agog with rumours that UTI has started unloading considerable chunks of ITC. FIIs were reported to have bought stocks of Castrol, Zee Telefilms and Reliance.

According to technicalanalysts, the recovery in terms of volumes and share price in the case of Telco, Tisco, Essel Packaging and United Phosphorus has been influenced by the technical indicators. ``The charts highlight that these stocks are poised in for a rally,'' explained Neel Dalal, BSE broker.At the kerb, stocks like Zee Telefilms, Castrol, Pentafour Software and Satyam Computers were quoted at a premium of over 3 per cent on an average.

According to market participants, the increasing short positions at this counter coupled with the upbeat mood of the market has been responsible for the upward move at the unofficial markets.