Brokers said the sentiment turned for the better on fresh buying following the Centre's decision to accede to coalition partners' demand to roll back the proposed hike in prices of foodgrains thereby averting any major political crisis.

Sensex (BSE sensitive index) started better at 3267.67 and moved between 3283.22 and 3234.64 before closing at 3277.57 with a net gain of 40.81 points compared to the previous level of 3236.76. The BSE-100 index also recovered by 17.89 points to 1442.21 from the previous level of 1424.32.

FIIs reportedly purchased pharma shares like Pfizer, Glaxo, Rhone Poulenc and Hindustan Lever. The sentiment was well supported by fresh buying on the first day of the new account on the National Stock Exchange (NSE).

The volume of business, however, was low at Rs 1345.18 crore as compared toyesterday's turnover of Rs 1420.36 crore. Pentafour Software remained the most active scrip with a turnover of Rs 282.09 crore followed by ITC of Rs 143.62 crore, Satyam Computer of Rs 142.56 crore, Tata Tea of Rs 60.05 crore and TELCO Rs 53.96 crore. ITC gained Rs 14 at Rs 12.25 at Rs 814, Satyam Rs 22 at Rs 908, Tata Tea Rs 18 at Rs 379, Hindustan Lever Rs 24.50 at Rs 1918.50 and Tisco Rs 4.10 at Rs 116.60.

On the NSE, pivotals recovered moderately on good buying support from bull operators and institutional investors on the opening day of the new settlement period. The S&P CNX Nifty index rose by 21.20 points to 952.40. The total turnover was Rs 2,136.92 crore. 720 securities gained, 302 declined while 76 remained unchanged. 101 securities have hit their price bands today.