Infotech stocks suffer again

MUMBAI, JAN. 7. The benchmark 30-share index recouped its initial losses following a sharp rally in economy stocks in the latter part of the session on the Bombay Stock Exchange today on hectic buying by speculators as well as Indian financial institutions despite selling pressure from foreign funds.

Depressed by a further downslide in the Nasdaq composite index that lost another 150 points last night, FIIs resorted to heavy pounding in technology stocks from both specified and cash group and were reportedly net sellers in key scrips such as Infosys, NIIT, SSI, Tata Elxsi, Wipro, Pentafour Software, Aptech, Silverline, Satyam Computer, Wipro besides pharma shares such as Dr. Reddy's Lab and Sun Pharma.

Infosys and NIIT were locked in lower circuit filter for the third successive day. A sharp turnaround in HLL, early losses in which had kept benchmark under pressure, aided Sensex recovery. Initially, the index heavyweight had dipped from yesterday's close of Rs. 2,304.50 to Rs. 2,250.

Indian financial institutions and punters pulled up all the heavyweight counters such as ITC, Telco, Grasim, Reliance, Tisco, SBI, HLL and Hindalco in the second half of the session.

The BSE sensitive index opened sharply down at 5358.28 and later fluctuated in range of 5463.25 and 5330.58 before closing at 5414.48 against yesterday's close of 5421.53, netting a small loss of 7.05 points.

However, the fall in BSE-100 index was more pronounced having dipped by 66.07 points to 2769.76 from the previous close of 2835.83. The BSE-500 index nosedived by 51.54 points to 1871.82 from yesterday's close of 1923.36.

The BSE-200 index and the dollex were also quoted sharply down at 620.91 and 237.59 compared with previous close of 636.93 and 243.68 respectively.

In specified group, 19 scrips hit the lower price band while 10 counters were locked in the upper circuit filter after exhausting the daily price limit. Besides, over 60 software scrips from cash section hit the lower price band.

- PTI

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