The BSE sensitive index moved erratically in a range of 3992.19 and 3941.85 before closing at 3976.88 with a net gain of 41.06 points compared to the previous level of 3935.82. The BSE-100 index also rose by 16.14 points to 1720.28 from the previous close of 1704.14.

Brokers said the sentiment remained better following fresh purchases by FIIs and domestic institutions and funds. FIIs have reportedly picked shares in good quantity mainly in Larsen & Toubro, Telco, Reliance and others. Indian financial institutions and mutual funds too lent support by making sizeable purchases in ACC and BHEL besides refinery and fertiliser scrips had broken the crucial resistance level of 3965, market sources said.

The operators were discounted the continuing shelling from across theborders by Pakistani troops. Software and pharmaceutical sectors, which normally attract good support from institutional investors, remained dull and featureless. Of the total 148 traded specified scrips, 109 showed sharp to moderate gains while 35 were losers.

Reliance remained in the limelight and clocked the highest turnover of Rs 165.13 crore of the total volume of business of Rs 1241.72 crore which was higher than yesterday's turnover of Rs 1094.44 crore. Reliance firmed up by Rs 4.80 to Rs 177.90. SBI gained Rs 1.30 at Rs 244.80, Larsen Rs 19.30 at Rs 260.80, ITC Rs 3 at Rs 1030, Telco Rs 6.30 at 189.50 and Tisco by Rs 1.80 at 110. However, Satyam Computer dipped by Rs 42.80 to Rs 1329.90, Ranbaxy by Rs 10 to Rs 628 and Hindustan Lever by Rs 17 to Rs 2270.