However, a mid-way purchasing by foreign funds and institutional investors brought back recovery in the stock markets. The Sensex closed at 4622 as against last Sunday's (Moorat session) close of 4651, netting a modest fall of 29 points. The BSE-100 index fell back by 17 points to 2166 from previous close of 2183.

Switching of positions by operators from the National Stock Exchange (NSE), (Tuesday being last day of settlement), also led to a recovery in the Sensex. However, with the index heavyweights like Hindustan Lever, ITC and Reliance Industries losing ground, the Sensex closed lower. Rumours of tension at the China border also led to a selling pressure at the bourses.

With the Nasdaq index again reaching a new high,software stocks were in keen demand. Says a software analyst with foreign brokerage house, ``The Microsoft-proof Wall Street has put an end to fears of a drop in the Nasdaq benchmark for the software stocks valuations. This ignited a fresh interest in the software counters on the Indian bourses. ''

Cement stocks were in keen demand, thanks to a rising cement prices in Western India. ``Cement stocks led by ACC and India Cements saw hectic buying. ACC was locked at the day's highest levels with only buyers at the counter,'' says a dealer with a BSE broker. India Cement also exhausted its permissible daily limit of eight per cent.

The company has informed the Chennai Stock Exchange about its proposal to tap the market with Rs 100 crore equity issue to finance the Sri-Vishnu Cement acquistion. Among other major gainers in the Group A were Sun Pharmamecutical, Nicholas Piramal, Siemens and Amararaja Batteries. Nicholas Piramal, a major beneficiary of upward revision in the price of Vitamin A, was in keendemand. There were only buyers at the counter.

Of the 145 traded specified shares, 99 registered moderate losses while 44 showed sharp to handsome gains and two remained unchanged. Ranbaxy Laboratories clocked the highest turnover of Rs 329.67 crore of the total volume of business of Rs 2445.92 crore. Other top traded scrips were Satyam Computer (Rs 295.73 crore), Pentafour Software (Rs 178.63 crore), Silverline (Rs 166.02 crore) and Zee Telefilms (Rs 153.98 crore).

With the Mumbai bourse closed tommorrow for local holiday brokers expect the markest to be dull on Wednesday. ``There is unlikely to be any fireworks in the markets tommorrow,'' says a BSE broker.

``The markets expected to move in a band of 4243 and 4750 points. However, FIIs have not been very active though some FII buying is expected next week. In the medium term, the markets are expected to start moving up by second week of December and are likely to be explosive January onwards. However, there may be some aberrations if some fresh taxesare imposed as has been hinted by the finance minister,'' says Ambareesh Baliga at Kotak Mahindra Securities. ``The worst the markets can now fall is to 4300 levels,'' adds a BSE broker.