Date:21/02/2008 URL: http://www.thehindu.com/2008/02/21/stories/2008022155861900.htm

Business

Stocks weak on global cues

Sensex closes 458 points down; IT shares buck the trend

MUMBAI: The Bombay Stock Exchange benchmark Sensex on Wednesday plunged by over 450 points to below the 17000-level on aggressive selling by funds following weakening global trends.

The Sensex, after a lower start, fell further to post a loss of 458.06 points at 17617.60. It touched the day’s low of 17505.56 and a high of 17991.29.

While most stocks tumbled, IT sector, led by Infosys Technologies, bucked the trend by gaining fresh ground on reports that the government might consider fresh tax sops to the exports business. Brokers said over 50 per cent of the revenues of Indian software companies came from the U.S.

Brokers said a weakening rupee also sent signals of a better revenue for companies in IT business.

The National Stock Exchange index, Nifty, also dropped by 126.35 points to 5154.45, after touching a low of 5116.30 and a high of 5267.15.

Selling activity was spread over a wide front of sectors, including banking segment, on concerns that margin might fall following a big gap in lending and deposit rates, traders said. The major pull to the market came in from banking stocks and its index lost 353.95 points at 10609.81, followed by capital goods index by 459.40 points to 15932.87. — PTI