On the upside, the index touched a high of 2,977.03 but marginal profit booking towards the last phase saw the index close a shade lower. Mirroring the increased participation of speculators, Tisco and Infosys hit the circuit filter in the first phase of the trading session itself. It is learnt that the price was a reflection of the price established at the kerb markets on Friday evening and Saturday.

The speedy rise in the Sensex was largely attributed to the institutional participation in the wake of the Iraq-US war being called off, and the attempts made by FIIs to shore up the NAV of their funds. Interestingly, FIIs were net sellers onthe local bourses. On the BSE, the FII sales on the first day of the trading cycle was pegged at a high of Rs 29 crore, while on the NSE it was restricted to Rs 5.13 crore. Similarly, FIs were net sellers on the BSE, their sales were marked at Rs 7 crore.

According to market sources, although FIIs were reported to have been net sellers on the local bourses, most of their trades were in the form of ware-house deals which would be reported at a later stage during the week. ``Fresh FII allocations are bound to be routed to info-tech and pharma,''said Rajiv Chitrabhanu of Prabhudas Liladhar. ``Speculative activity was also rampant today,'' he added. Stocks like Zee Telefilms and Pentafour Software shot up by over 8 per cent on the local bourses to be locked at the day's highest price. While Zee Telefilms was locked at Rs 632.10, Pentafour Software was also locked at Rs 553.50.

The Tata group stocks were back in action. While Tisco flared up by over 8 per cent to be locked at Rs 104.75 on the back of the newsthat the sale of the cement division will bring in fresh funds of Rs 550 crore, Telco was also locked at the day's highest bid of Rs 152.50.

According to analysts, the fresh infusion of Rs 550 crore was not the only perspective which market considered as a positive development at Tisco. ``A leading foreign company buying the cement division brings good news for the cement sector. The deal is indicative of the revival of the cement sector,'' explained a strategist with a leading FII. It is learnt that among the FIIs, Morgan Stanley broking and Socgen Crosby placed huge chunks of purchase orders at the Telco counter, which were essentially in the form of warehoused deals. However, it could not be confirmed.

Interestingly, while the stock was locked at the upper limit of the price band, a huge outstanding buy order of over 1.64 lakh shares was registered at the counter. The stock further appreciated by over 1 per cent during early kerb trades to be quoted at Rs 155 against the official closing of Rs 152.50.