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Sell-off in techs pull India's key share index lower
Tuesday, 11 February 2003, 20:30 IST
MUMBAI: Large-scale profit taking in blue-chip technology counters dragged India's benchmark share market index into the negative zone for the second consecutive session in a lacklustre trade.
Mirroring the bearish sentiment, the market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 3,256.86, a loss of 22.91 points or 0.70 percent from its previous session's close.
Dealers said the market opened little changed compared to its previous session and kept moving within a close range for better part of the trading period as fund managers stayed on the sidelines on fears of a possible U.S.-led strike on Iraq.
Fresh institutional buying interest in stocks of state-run oil giant Hindustan Petroleum Corporation Ltd. after the government invited preliminary bids to sell a 34 percent stake in the company failed to stem the index slide.
"The market mood is very depressed on fears of war in the Middle East. The rising fears of war has also put a lid on the traditional pre-budget rally on the bourses," said a fund manager with a foreign brokerage firm.
"While technology stocks led the fall due to sustained weakness in the U.S. markets, old economy and defensive sector stocks also accounted for the slide," the fund manager added.
Sentiment on the technology counters was also dampened by reports that four other states in the U.S. were mulling to ban off-shoring government business process outsourcing (BPO) contracts to India.
The reported move comes close on the heels of introduction of a bill in New Jersey Senate that seeks to block outsourcing of back office works to other countries, including India.
According to reports, the state of Missouri, Maryland, Wisconsin and Connecticut are contemplating legislation that will prohibit outsourcing of federal BPO works to countries like India.
Infosys Technologies, India's largest listed software exporter, lost 3.8 percent to touch 
4,308.10 on rumours that its proposed American Depository Receipt programme may get delayed due to sluggish overseas markets.
Hyderabad-based Satyam Computer ended 3.0 percent lower at 216.05 and HCL Technologies, a New Delhi-based software development and services major, closed with a loss of 2.3 percent at 165.20.
Other major losers in the sector included Hexaware, NIIT, Polaris Software, Mascot Systems, I-flex Solutions, Hughes Software and Wipro.
In the old economy sector, Hero Honda Motor, India's largest motorcycle maker, fell 2.1 percent to 231.80 on reports that its rivals like Bajaj Auto, TVS Motor and Yamaha have increased market share through new launches.
State Bank of India, the country's largest commercial bank, ended 2.1 percent lower at 295.30, ICICI Bank was down nearly one percent at 142.20 and Ranbaxy Laboratories closed with a loss of 1.1 percent at 627.20.
Counters such as Cipla, Dr. Reddy's Laboratories, Zee Telefilms, Union Bank of India, Bank of Baroda, Canara Bank, Bank of India, Oriental Bank of India and Punjab National Bank also closed lower.
Shares of public sector Hindustan Petroleum Corporation, on the other hand, gained 1.9 percent to touch 304.45 after the government invited preliminary bids to sell a 34 percent stake in the company.
Source: IANS
4,308.10 on rumours that its proposed American Depository Receipt programme may get delayed due to sluggish overseas markets.
Hyderabad-based Satyam Computer ended 3.0 percent lower at 216.05 and HCL Technologies, a New Delhi-based software development and services major, closed with a loss of 2.3 percent at 165.20.
Other major losers in the sector included Hexaware, NIIT, Polaris Software, Mascot Systems, I-flex Solutions, Hughes Software and Wipro.
In the old economy sector, Hero Honda Motor, India's largest motorcycle maker, fell 2.1 percent to 231.80 on reports that its rivals like Bajaj Auto, TVS Motor and Yamaha have increased market share through new launches.
State Bank of India, the country's largest commercial bank, ended 2.1 percent lower at 295.30, ICICI Bank was down nearly one percent at 142.20 and Ranbaxy Laboratories closed with a loss of 1.1 percent at 627.20.
Counters such as Cipla, Dr. Reddy's Laboratories, Zee Telefilms, Union Bank of India, Bank of Baroda, Canara Bank, Bank of India, Oriental Bank of India and Punjab National Bank also closed lower.
Shares of public sector Hindustan Petroleum Corporation, on the other hand, gained 1.9 percent to touch 304.45 after the government invited preliminary bids to sell a 34 percent stake in the company.
Source: IANS