Day traders' protest hurts

STOCKS REPORT

Markets end flat amid thin volumes, Sensex down 1 point, Nifty up 4 points.

Market ended flat amid thin trades as day traders and arbitrageurs stayed away from the market protesting the government's proposed 0.15 per cent transaction tax.

The volumes at the bourse dipped nearly 50 per cent to its three-year low of Rs 1,012 crore at the Bombay Stock Exchange, as against the daily average volume of Rs 2,000 crore.

The 30-shares Sensex ended 0.02 per cent lower or 0.94 points lower at 4,944.54. The NSE S&P CNX Nifty index ended 3.75 points higher to close at 1,556.95.

A leading BSE broker said, "The concerns of transaction tax has kept day-traders away from the market resulting in low volumes."

Hundreds of day traders stayed away from work on Monday in protest and are likely to keep the course on Tuesday too. Market players estimate day traders account for some 70-80 per cent of the turnover on the stock exchanges.

Index heavyweight Reliance Industries stock was down 0.55 per cent to Rs 436.15, ITC ended 0.37 per cent lower to Rs 1,053.30 while ICICI Bank stock ended 1.29 per cent down to Rs 241.15 on selling pressure.

Infosys Technologies stock was down 0.46 per cent to Rs 1,376.25 after hitting the day's high of Rs 1,400 on selling at higher levels ahead of the announcement of company's June quarter results on Tuesday.

Meanwhile, Satyam scrip gained 3.59 per cent from Rs 307.90 to Rs 318.85 before closing at Rs 317.45. More than 17.65 lakh Satyam shares were traded on BSE today.

Tata Steel stock ended 2.56 per cent higher to Rs 314.50 on fresh buying following reports that the duty entitlement passbook (DEPB) scheme would be restored to the industry. This will encourage companies to export the metal again.

Cipla stock gained 1.78 per cent to Rs 234.20 on reports that the World Health Organisation (WHO) may re-list two of the firm's anti-AIDS drugs if they clear new tests.

Telecom major, Bharti Televentures Ltd lost ground and fell 2 per cent to Rs 154.95 as the Left supporters of the Congress-led government voiced concern over hike in FDI in telecom, insurance and aviation.

However, FMCG major HLL managed to buck the trend to gain 1.3 per cent to Rs 123.95 on news of a good monsoon.

Tata Honeywell gained 2.2 per cent to Rs 360.80 after Honeywell Asia Pacific said it would buy out the entire shareholding of the Indian partners. Tata Iron and Steel (Tisco) gained 2.6 per cent to Rs 314.50 and Tata Chemicals gained 2.7 per cent to Rs 123.55. Tata Power stock, however, slipped 0.2 per cent to Rs 253.75.

All of these companies hold stakes in Tata Honeywell. Tata Motors stock gained 1.79 per cent to Rs 423.05 on the back of a favourable budget proposals where the income tax exemption raised on R&D spend has been hiked.