With this rally, Sensex has recovered most of the losses in the last week. Sensex had plummeted by 242 points after India started air strikes in the Kargil region of Kashmir against infiltrators last week. ``Now it seems the Indian Army has almost pushed out these infiltrators from the Indian soil. Chances of another Indo-Pak war are slim,'' said a broker.

As result of the sharp upsurge, 19 specified scrips including index scrips like Reliance, Tisco, Telco, SBI, MTNL, Larsen, Grasim and Glaxo hit the upper circuit filter after exhausting thedaily limit. Out of 148 specified shares, 142 showed gains while four recorded fractional losses and others held steady.

Satyam Computer was the most active scrip with a turnover of Rs 141.67 crore of the total volume of business of Rs 1341.05 crore. Satyam Computer shot up by Rs 73.50 to Rs 1418.50 on speculative support. SBI firmed up by Rs 18 to Rs 243.50, ITC by Rs 45 to Rs 1060, Reliance by Rs 12.35 to Rs 167.35, Ranbaxy by Rs 32 to Rs 629, Telco by Rs 13.65 to Rs 184.65, Tisco by Rs 8.10 to Rs 109.60 and Hindustan Lever by Rs 54.80 to Rs 2295.80.

Meanwhile, the rupee gained by 7 paise to 42.84 at the foreign exchange (forex) market today as dealers discounted the possibility of a direct Indo-Pak conflict. The rupee's rally was also encouraged by reports that the Indian armed forces had gained an upper hand on Pak-backed infiltrators in Kargil by ousting them from many occupied posts along the line of actual control.

Opening at 42.86/88, the rupee showed a range-bound movement of 42.83-42.88 duringthe day and eventually ended at 42.84/85. The previous close was 42.91/93. ``The dollar supply was sufficient to absorb the moderate demand,'' said a dealer. News that India had accepted a Pakistani offer to send their foreign minister to this country also aided the positive sentiments. ``The Pakistani offer is seen as a conciliatory gesture and recedes the possibility of an open war between the two countries,'' opined a senior dealer with a local bank.