ICE melting again, DSQ Software top loser

MUMBAI, AUG 4: If Sterlite Industries led the bear rally on the stock market on Thursday, it was DSQ Software's turn on Friday. Led by DSQ...

MUMBAI, AUG 4: If Sterlite Industries led the bear rally on the stock market on Thursday, it was DSQ Software8217;s turn on Friday. Led by DSQ, infotech, communication and entertainment ICE stocks fell sharply at the Bombay and National Stock Exchanges following heavy selling pressure from foreign funds and operators. The sell-off lead to a 111-point intra-day fall in the Bombay Stock Exchange Sensex, but it retrieved part of the losses and closed with a decline of 21 points, thanks to FMCG stocks.

Rumours based on a bogus news item on an internet site that a member broker of the Calcutta Stock Exchange, running long on DSQ Software has defaulted, led to a sharp decline in the DSQ scrip as well as other IT shares. The immediate clarification by the CSE officials however, helped the market to recover from their intra-day falls. DSQ fell by 16 per cent and hit the lower circuit.

Sterlite had fallen by about 16 per cent on Thursday following reports about problems in its bid for a DoT project.

Reflecting the trend, BSE Sensex opened on a firm note at 4241.23 points, higher by 33.60 points and the benchmark index further firmed up further by touching the day8217;s high of 4266.21 points, but tumbled by 110.76 points from the day8217;s high to touch the day8217;s low of 4155.45 points following heavy sell-off by market players in key IT counters. Sensex recovered partially from the day8217;s low to close at 4186.16 points netting a loss of 21.47 points from the previous close of 4207.63 points.

The IT Index of the BSE plummeted by 190.78 points to 2796.30.

DSQ recorded a maximum 16 per cent decline to Rs 499 from the previous close of Rs 594, followed by Global Tele 16 per cent to Rs 969 from Rs 1153, Silverline 11 per cent to Rs 299 from Rs 334, Satyam Computer 10 per cent to Rs 2169 from Rs 2410, Wipro 8 per cent to Rs 2190 from Rs 2375 and Himachal Futuristic Communication 8 per cent to Rs 1251 from Rs 1360.

ICE scrips bore the brunt of bear assault and showed steep losses despite a smart recovery of over 101 points in the Nasdaq Composite Index last night. Dealers said the investors continued to shy away from the infotech sector stocks due to persistent selling by FIIs. According to market perception, FIIs are sitting on the fence and waiting for the Indian currency to stabilise. Led by Hindustan Lever, majority of the FMCG shares bucked the general trend and saved the day, recording noticeable gains on buying by local institutions and funds.

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8220;Well orchestrated moves by operators placed the markets in a limbo with the sentiment turning extremely bearish at the end of the current settlement on the BSE. Operators managed the Sensex well as buying interest was witnessed in HLL and ITC,8221; said a broker, adding, 8220;on Friday, operators were able to hide, atleast for sometime, heavy selling in the infotech counters behind the facade of some revival in the market benchmark Sensex.8221;