Reflecting the uptrend, the S&P CNX Nifty index appreciated by 11.60 points to close at 978.20 points from its previous close of 966.60 points. While 654 securities advanced, 289 securities declined with 74 securities remaining unchanged. Almost 69 securities hit the upper circuit reflecting a firm and bullish undertone.

``Markets improved on the back of cautious buying by foreign institutional investors (FIIs) which led to a firmer undertone and saw the Nifty improve by 1.2 per cent. Largely, the pivotals were firm and the software and pharmaceutical stocks which had been underperforming gained today. This also indicates that FII buying iscontinuing,'' said Govind Agrawal, vice-president, institutional broking at Motilal Oswal Securities.

``The markets opened strong and closed on a firm note with the movement range bound. The undertone is firm and today being a holiday, the institutional activity was a bit limited although FIIs made cautious purchases,'' said Malay Sameer at Apple Mutual Fund, who added that the markets are slated to open on a firm note on Monday. The FMCG counters were strong with scrips of Colgate, Reckitt & Coleman, Cadbury's and Britannia in demand. Software stocks also gained, though not very significantly.

Pentafour Software and Satyam Computers closed at least Rs 30-40 higher from their previous closing. Stocks of oil refineries like BPCL and HPCL were on the upper circuit and were heavily in demand, said a broker. ``The stocks had been witnessing a bear phase for a long time now and both had reached their oversold zone so institutional investors found value at these levels. The upward momentum and strong sentimentis likely to continue,'' said a NSE broker.

Tata Unisys hit the upper circuit at Rs 1,417.20 as news of the company meeting to declare a dividend on May 4 and rumours of a bonus surfaced. Aptech declared its results on Friday and despite lower losses, the stock price move down to Rs 830 compared to Rs 842 in the previous close.