The index moved past the 3,700-mark in early afternoon deals, and rallied sharply thereafter on buying in PSUs, techs and select heavyweights.

The Sensex finally finished with a gain of 58 points at 3,726. The Nifty advanced 24 points to 1,163.

PSU frontliners were on a roll today. SBI rallied sharply on sustained buying interest following the reported move to differentiate FII and FDI investments in banks. The stock spurted 5% (Rs 19) to Rs 426. More than 29 lakh shares were traded on the BSE with a turnover of Rs 125 crore.

HPCL rose 2% (Rs 5) to Rs 333. BHEL and MTNL held gains on buying support, and finished up a per cent each at Rs 267 (up Rs 4) and Rs 108, respectively.

Heavyweights largely finished with gains. HLL and Reliance, after trading in negative zone for better part of the session, gained ground towards the close and finished in the gainers list. While HLL gained 2% (Rs 3) to Rs 170, Reliance closed up a per cent (Rs 4) at Rs 349.

ITC, which reported a 15.50% increase in net profit at Rs 397.22 crore for the quarter ended June 30, 2003 when compared with Rs 343.92 crore in Q1FY03, slipped on profit-booking to finish with a loss of 2% (Rs 12) at Rs 735.

Tech pivotals finished firm. Satyam jumped 3% (Rs 6) to Rs 193. Infosys, after displaying mixed trends during intra-day deals, finished up a per cent (Rs 45) at Rs 3,513. HCL Tech traded in a narrow range in positive zone through the session, and added 2% (Rs 3) at Rs 168.

Auto and cement stocks also contributed to gains notched up by the Sensex today.