The market staged a smart recovery on Tuesday following bargain hunting in stocks at lower levels, after six straight sessions of losses.

Touching the current calendar year's lowest level of 3,100.14 in intra-day trades, the BSE 30-share Sensitive Index (Sensex) settled with a gain of 29.03 points at 3,154.91.

The NSE S & P CNX Nifty Index ended 7.85 points higher at 1,014.85.

Stocks recovered smartly, after a subdued opening, due to good buying support from local institutions at lower levels, led by the Life Insurance Corporation of India (LIC). Tech, PSU and bank stocks were the major gainers.

The market sentiment also improved following the reports of a delay in the UN's Security Council vote on an ultimatum for Iraq to disarm or face war.

According to reports, US President George W. Bush, who has already dispatched troops to invade Iraq and is anxious to resolve the UN standoff, telephoned China's president and other world leaders on Monday in a bid to muster support for a 17 March 2003 ultimatum. But with the Security Council beginning an open debate on the crisis on Tuesday, diplomats said the United States and Britain were prepared to put back any vote, possibly until Thursday or later.

Meanwhile, there have been rumours that the LIC may come to the rescue of the Unit Trust of India (UTI), which has to meet near-term (over the next four months) redemption pressure in at least five schemes (with a total corpus of Rs 680 crore).

Hero Honda Motor bounced back smartly from an intra-day low of Rs 208.25 to Rs 233.65 before settling at Rs 230.85, up 8.10% over its previous close. There were reports that the company will renew its technical collaboration with Honda Motor Company. Over 4.05 lakh Hero Honda shares were traded on the BSE.

Reliance Industries (up 3.27% to Rs 285.70) gained ground, recovering from the day's low of Rs 274 on renewed buying support after a subdued opening.

There were reports that Indian refiners, led by Reliance Industries (RIL), are stepping up exports of gasoline, diesel and jet fuel, realising bumper margins. Exports of refined petroleum products from India are on the rise even as traditional suppliers in the Arabian Gulf have tightened supplies. Over 19.15 lakh RIL shares were traded on the BSE.

Tech pivotals like Satyam Computer (up 2.80% to Rs 205.80), HCL Technologies (up 2% to Rs 150.65) and Infosys Technologies (up 2.09% to Rs 4,129.45) ended with smart gains on renewed buying support after a recent fall from the higher levels.

Tisco (up 1.78% to Rs 137.50) advanced, rising from the day's low of Rs 133.90, on renewed buying support following hopes that the firm trend in the global steel prices may help the company to post improved results in the current year. Over 17.20 lakh Tisco shares were traded on the BSE.

Public sector undertaking stocks like HPCL (up 1.98% to Rs 293.70), MTNL (up 1.45% to Rs 97.70), State Bank of India (up 1.45% to Rs 276.95) and Bhel (up 1% to Rs 201.55) also gained ground on renewed buying support.

Bajaj Auto (down 1.50% to Rs 477.30) lost further ground on reports that the company may not meet its vehicle sales target of 1.5 million units for the year ending 31 March 2003, due to an unexpected lack of demand in north India during the festive season of ‘Diwali'.

Other pivotals like HDFC (down 1.30% to Rs 365.75), BSES (down 1.43% to Rs 210.75), Hindalco (down 1.24% to Rs 573.20) and Castrol India (down 1.10% to Rs 199.95) ended lower on selling pressure.

Defensive sector pivotals like Ranbaxy (down 0.98% to Rs 629.65) and Dr Reddy's Laboratories (down 0.52% to Rs 885.25) ended in the red, but recovered from the day's low on selective buying support.

Polaris Software bounced back from the day's low of Rs 125.05 to a high of Rs 132.25 before settling at Rs 131.55, up 2.97% over its previous close.

Hughes Software Systems (HSS) also rose from an intra-day low of Rs 170.70 to a high of Rs 184.80 before settling at Rs 181.75, up 3.38% over its previous close. Over 32.89 lakh HSS shares were traded on the BSE.

Digital GlobalSoft (up 2.38% to Rs 631.30) and i-flex Solutions (up 1.23% to Rs 849) also ended with modest gains on bargain hunting at lower levels after a subdued opening.

Other non-Sensex frontline tech stocks like Mascot Systems (down 1.52% to Rs 106.70) and Wipro (down 1.09% to Rs 1,349.20) ended in the red, but recovered from their day's low on selective buying support.

Public sector bank stocks like Bank of Baroda (up 4.56% to Rs 82.50), Punjab National Bank (up 4.57% to Rs 89.25), Union Bank (up 1.81% to Rs 22.50), Canara Bank (up 1.83% to Rs 61.05), Dena Bank (up 1.23% to Rs 12.35) and Oriental Bank of Commerce (up 0.71% to Rs 56.50) ended with gains on bargain hunting after a recent fall from the higher levels.

Punjab Communication bounced back from the day's low of Rs 45.25 to a high of Rs 51.90 before settling at Rs 51.05, up 2.41% over its previous close.

Padmalaya Telefilms (up 14.30% to Rs 51.95) also firmed up on bargain hunting after losing close to 40% in the last couple of sessions.

Shipping Corporation of India (up 2.90% to Rs 56.80) gained ground on renewed buying after the company announced a 30% interim dividend for the year ending 31 March 2003.

Steel scrips like Jindal Steel (up 8.52% to Rs 335.15), Bhushan Steel (up 7.71% to Rs 30.75), Tata Sponge Iron (up 5.46% to Rs 32.85), Jindal Iron (up 5.02% to Rs 73.25), Steel Authority of India (up 4.52% to Rs 9.25) and Jindal Strips (up 2.76% to Rs 143.50) advanced on hopes of improved performance of the steel sector, helped by rising global as well as domestic steel prices.