Interestingly, when the market indices tested the crucial levels of 2,820 twice, HLL was the only stock which provided the much needed support to the index by maintaining its upward rise. This according to market participants, was purely on account of the strategic attempts made by the domestic institutions like UTI and SBI Mutual fund to keep HLL on its buy list.

According to market sources, when the market sentiment is at its lowest ebb and the volumes are considerably low, financial institutions always resort to the strategy of propping up the prices of heavy weight index stocks which helps keep the index at a corrected levels.

``If not for HLL and ITC, the index would have been trading in the band of 2,200 and 2,350,'' explained a veteran BSE broker in the light of the contribution made by these two scrips to maintain the index above the 2,650 levels.

Giventhe background of the role of FIs in propping up the price HLL, market sources also explained the modus operandi of FIs in booking profits at the HLL counter while the Prime minister's package was sufficient to take care of the market mood.

Market sources attribute the steady fall in the price of HLL to profit booking by local institutions coupled with the sell off by punters who had substantial long positions at the counter backed by market speculation on account of its nine month result to be announced on October 27.

On Monday, the scrip was traded in the band of Rs 1,585.25 and Rs 1,655, the intra-day's high and low respectively. However, in the final countdown, the stock closed at Rs 1,590 registering a meagre gain of less than one per cent. It should be recalled that HLL tested the crucial barrier of Rs 1,600 twice during the week ended October 24, however closed lower registering a sharp fall in its volumes.

While a section of market men continue to believe that the company will declare a 25-30per cent rise in its net profits, the 60 per cent drop in the profits of Colgate seems to have disturbed the market's expectation. Last year, HLL announced a net profit of Rs 560 crore, and market players expect this year's profits to be in the range of Rs 725-735 crore.

According to market sources, FIIs like Jardine Fleming broking and CSFB have sold about 2.5 lakh shares of HLL at Rs 1,600 levels on October 22 and 23. The short positions of HLL increased to 48,000 shares on the BSE on Monday, while the long positions which reflects the expectations of the market participants in terms of its improved performance increased to 81,000 shares.