The Sensex commenced with a gain of 21 points at 5,321. The markets drifted into the negative territory in mid-morning deals as selling pressure in select old and new economy stocks dragged the index to a low of 5,284.

After remaining subdued till the early noon deals, the index recouped its lost ground on sustained buying in select tech, PSUs, cement and other old economy stocks to touch a high of 5,344.

The Sensex finally settled with a gain of 16 points at 5,316. The Nifty, which breached the 1,700 levels to touch a high of 1,706, gained four points to close at 1,699.

Infosys held gains on sustained buying support, and moved up a per cent (Rs 58) to Rs 5031. Satyam witnessed buying in its counter, and gained 2% (Rs 7) to Rs 343. Wipro, however, exhibited weakness through the session, and lost nearly 2% (Rs 27) to Rs 1,607.

Gujarat Ambuja flared up 4% (Rs 12) to Rs 304. ACC rose sharply towards the closing hours, and moved up 2% (Rs 5) to Rs 227. Grasim clocked a per cent gain (Rs 12) to Rs 916. L&T, however, ended a per cent lower (Rs 3) at Rs 437.

HDFC and HDFC Bank surged 3% each to Rs 633 (up Rs 20) and Rs 360 (up Rs 10), respectively. Tisco, after a mixed outing, rose nearly 4% (Rs 13) to Rs 379 on sustained buying support.

HPCL added a per cent (Rs 4) to Rs 408. SBI ended off-highs and finished up a rupee at Rs 474. BHEL, however, ended down a per cent (Rs 5) at Rs 445. MTNL shed 3% to Rs 117.

ITC languished in the negative territory through out the session to finish down a per cent (Rs 9) at Rs 965. Reliance and HLL also ended in the losers list at Rs 491 and Rs 187, respectively.

Bajaj and Hero Honda displayed weak trend through out the session, and slipped a per cent each to Rs 1,010 (down Rs 13) and Rs 395 (down Rs 4), respectively. Tata Motors, however, ended with a per cent gain (Rs 4) at Rs 419.

Dr. Reddy's and Cipla ended at weaker levels at Rs 1,354 (down Rs 11) and Rs 1,186 (down Rs 8), respectively. Ranbaxy, however, ended with a modest gain of Rs 2 at Rs 1,073.

ICICI Bank slipped nearly 2% (Rs 5) to Rs 279. Hindalco was down Rs 4 at Rs 1,326.