The Hindu : Business : Market snaps three session gaining streak

Online edition of India's National Newspaper
Wednesday, Jul 21, 2004

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Business

Market snaps three session gaining streak

MUMBAI, JULY 20. The market cut short three-session gaining streak and ended with a moderate fall of 18 points as investors turned sellers in the technically overbought market as decision on the proposed transaction tax rate was deferred by a day coupled with demands of rollback of hike in FDI limit by one of the outside supporters of the UPA Government.

The volume too was adversely affected as day-traders and arbitrageurs slowed down their activity.

The BSE benchmark 30-share index opened steady at 4974.52 and was later trapped in a narrow range between 4982.04 and 4936.60 before ending at 4957.88 against yesterday's close of 4975.40, a net fall of 17.52 points. The broadbased BSE-100 index fell by 10.83 points to 2648.07.

Market players largely attributed selling pressure to the delay in announcement of reduction of the transaction tax rate, which day-traders, retailers and arbitrageurs have eagerly been awaiting since yesterday. Operators seemed to be unwilling to hold long positions built up in the Futures and Options (F&O) segment in the prevailing market situation.

Investors showed little interest despite positive foreign institutional investors inflow on Friday and net purchases by domestic mutual funds. Investors also have taken a serious view of the CPI's attack on the ruling alliance in the Lok Sabha for hiking FDI limit in civil aviation and telecom sectors in the budget.

Blue-chip counters such as Bajaj Auto, Hero Honda, Tata Motors, Infosys Tech, Satyam Computer, Hindalco, ITC, SBI and GACL suffered a sharp setback.

PTI

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