Mumbai: The market cut short three-session gaining string 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 (Foreign Direct Investment) limit by one of the outside supporters of the UPA (United Progressive Alliance) Government today (July 20, 2004).

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 of 4982.04 and 4936.60 before ending at 4957.88 as against yesterday's close of 4975.40, a net fall of 17.52 points or 0.35 per cent.

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 shown little interest despite positive FII (Foreign Institutional Investment) inflow on Friday and net purchases by domestic mutual funds.

Investors also have taken a serious view of the CPI's (Communist Party of India) 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 like Bajaj Auto, Hero Honda, Tata Motors, Infosys Tech, Satyam Computers, Hindalco, ITC, SBI and GACL suffered a sharp setback.

However, HPCL, Grasim, HDFC Bank, RIL and ICICI Bank recorded handsome gains.