Market ends flat in high volatility

Mumbai, July 2 (PTI) The Sensex ended flat after a high
level of volatility Thursday as the hike in fuel prices and
recommendation of the Economic Survey to rationalise dividend
distribution tax (DDT) played spoilsport in bullish market.

Weakness in European stocks in early trade also weighed
on investor sentiment.

The Bombay Stock Exchange 30-share barometer ended the
day at 14,658.49, up 13.02 points from its previous close.

The market was choppy throughout and fluctuated in a
range of 14,764.35 and 14,469.69 during the day.

Bourses shrugged off factors like minus inflation and the
Survey's suggestion for a review and phasing out cesses,
surcharges and transaction taxes such as fringe benefit tax
(FBT), Securities Transaction Tax (STT) and Commodities
transaction tax (CTT).

The Survey also suggested aggressive disinvestment and
financial sector reforms to bring the economy back to a
high-growth track as well as free pricing of fertiliser and
fuel.

Inflation stayed negative for the third week in a row, at
minus 1.3 per cent for the week ended June 20.

However, a ten per cent hike in petrol and diesel prices
caused concerns about adverse impact on inflation.

Marketmen said the suggestion for rationalition of DDT
induced fears that the government might make dividend taxable
in the hands of shareholders.

Reflecting a surge in its top heavyweight ONGC, the
National Stock Exchange 50-share Nifty gained 7.95 points or
0.18 per cent to close at 4,348.85 from its last close.

India's largest state-run oil exploration firm ONGC
gained 7.02 per cent following a petrol price hike as also
relatively low global crude prices compared to last year,
which will reduce its fuel subsidy burden in the current year.

PSU stocks attracted brisk activity after the Economic
Survey recommended a disinvestment target of a minimum of Rs
25,000 crore annually. Gail India spurted by 7.85 per cent,
Hindustan Copper by 4.99 per cent and HPCL by 2.73 per cent.

Among major gainers in the Sensex pack, Tata Steel was
up 6.37 per cent, Grasim 4.20 per cent, Sterlite 3.75 per cent
DLF 3.12 per cent, Sun Pharma 2.46 per cent, HDFC 2.33 per
cent, NTPC 2.17 per cent and Tata Power 2.04 per cent.

However, BHEL was down 3.03 per cent, RIL 2.29 per cent,
Bharti Airtel 2.27 per cent, Rel Comm 1.83 per cent, Tata
Motors 1.67 per cent and Maruti Suzuki 1.53 per cent. PTI JCG
RAI
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