Elsewhere, selective heavy-weighted economy stocks also strengthened on some support but others lacked necessary support and ended lower, pulling the benchmark to close in the negative territory.

The Delhi Stock Exchange benchmark index after moving in a narrow range, ended 9.98 points down at 1006.96 points after touching the session's low of 1002 due to sharp decline in Reliance Industries, Tata Steel and Telco. Stock brokers said some FIIs were seen pressing fresh selling in traditional blue chip and some multi-national company stocks in order to invest in market favourites - IT and telecom company stocks.

They said end of settlement on the National Stock Exchange also cast its shadow on the local market sentiments with players reducing their positions particularly in index-related stocks.

Several IT and telecom sector stocks such as Infosys Technologies, Satyam Computer, Silverline Industries, DSQ Software, Global Telesystems, Himachal Futuristic and Vallient Communications closed at an all-time highs, they added. ``Buying activity was selective and continued to centre around IT sector stocks as most of software exports are from units in software parks that enjoy income tax exemptions,'' said a DSE broker.

Infosys Technologies remained locked in the upper end of the price band for yet another session at Rs 12,913.75 (Rs 5 paid-up value) against yesterday's closing of Rs 11,957.20 on persistent buying by FIIs and other players amidst reports of steep rise in its ADRs (American depository receipts) at United States Nasdaq Stock Exchange.

Satyam Computer stocks traded heavily amidst reports that the company was planning to split its shares and prices went up by whopping Rs 527.50, or 8 per cent to hit the upper-side circuit-breaker at Rs 7121.50, an all-time high.

Silverline Industries at Rs 1237 (Rs 1145.40), DSQ Software at Rs 2320.05 (Rs 2148.20), Global Telesystems at Rs 3053.25 (Rs 2827.10), Himachal Futuristic at Rs 2422.25 (Rs 2274) and MTNL at Rs 338.10 (Rs 313.10) were freezed after crossing daily price limit of 8 per cent on all-round buying.