However, information technology (IT) and telecom sector stocks remaineddistinctly weak in volatile trading for the major part of the session butlate buying at lower levels pared some of the earlier losses to a certainextent.

The Delhi Stock Exchange sensitive index declined to 936.16 points in earlytrading on sustained selling but made a significant recovery on the back ofrevival of buying interest towards the middle of the session to close 13.18points higher at 961.34 points.

Stock brokers were hopeful that market regulator Securities and ExchangeBoard of India's (SEBI's) announcement about simplification in the marginsystem in the stock exchanges soon would help market sentiments toimprove.

They said while several economy-linked stocks staged a much-needed recovery,IT segment stocks surrendered further grounds following an overnight plunge,the third largest point drop to date of 189.22 points, or 3.91 per cent onthe technology-heavy US Nasdaq exchange. Domestic financial institutionsafter remaining on the sideline for the major part of the session turnedbuyers in several traditional blue-chip stocks towards close, they added.

"Apart from the plunge on the Nasdaq exchange, shifting of buying interesttowards economy-linked stocks was the other reason behind the fall in ITsector counters", said a DSE broker.

Petrochemicals giant Reliance Ind. shares turned bullish and hit theupper-end circuit filter at Rs 290.50 on emergence of buying by bulloperators on expectations of an attractive interim dividend to be announcedon Thursday. The shares had closed on Wednesday at Rs 268.35.

Reliance Petro too turned bullish. Tata Steel shares were in keen demandparticularly among domestic players and recovered by Rs 2.85 to close theday at Rs 108. SBI, stocks, after showing narrow movements at the outset,turned active on revival of buying by domestic FIs and ended Rs 5.40 higherat Rs 199.50. Fast moving consumer goods major HLL saw its stocks move upbut Nestle India shed Rs 4 at Rs 370.

IT sector stocks such as Infosys Technologies at Rs 9650 (Rs 10,202), WiproRs 1032.05 (Rs 1051.75), Satyam Computer at Rs 4810 (Rs 5150), HimachalFuturistic at Rs 1841.90 (Rs 1918.40) and global Telesystems at Rs 2396 (Rs2605) were prominent losers on large-scale selling.