The BSE Sensex moved in a narrow band on Thursday amid low volumes and dull activity in the market.

By the first half of the session, the Sensex was down by 3.85 points at 3,139.73. It moved in a narrow range of just about 11 points - touching a high of 3,143.81 and a low of 3,132.13. Volumes were low, with just 12 lakh shares of Satyam Computer changing hands on the BSE, Reliance Industries (390,000 shares) and Digital GlobalSoft (400,000 shares).

Dealers said there was lack of buying support from institutions as well as retail investors. Institutional selling was seen on the Hero Honda counter. The stock (down 3.7% to Rs 207.40) was the major loser on a fairly large volume of 390,000 shares. Morgan Stanley was said to have sold the stock. Index heavyweight Reliance Industries (down 0.9% to Rs 282.60) was also in the red on selling pressure.

In an otherwise dull market, two huge block deals of about 1.8 million shares were witnessed in the ICICI Bank stock on the BSE in early trades. However, the stock remained almost flat at Rs 135.25 (down 0.04%). The name of the parties involved in these transactions were not known.

Dealers said that institutions have largely preferred to remain on the sidelines following the uncertainty over the duration of the ongoing US-Iraq war, which entered its 8th day today.

Meanwhile, on the war front, a series of bomb explosions rocked Baghdad on Thursday. Fifteen Iraqis were reportedly killed in the process. It was the highest civilian death toll in the Iraqi capital since the war began.

Earlier, there were hopes that the war may get over soon, which led to hedge funds making heavy purchases. In four sessions between 19 March and 24 March 2003, the market surged sharply on the back of buying support funds but it soon lost steam soon on fears of the war getting prolonged.

The BSE Sensex lost 192.36 points, or 5.8%, in 9 sessions ahead of the war to hit a low of 3,084.91 on 17 March 2003 from its close of 3,277.27 on 3 March 2003. After the war began on 20 March 2003, the market staged an instant recovery. From a low of 3,084.91 on 17 March 2003, the Sensex surged by 133.82 points, or 4.3%, in four sessions to a high of 3,218.73 on 22 March 2003. The Sensex has slipped from its higher levels and it currently hovers around the 3,140 level.

Year-end considerations also led to sluggishness in the market today. Usually, financiers withdraw from the market during the end of a financial year. They re-enter only after institutions make fresh purchases at the beginning of the new financial year i.e. in April.