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Journalism of Courage
MUMBAI, MAR 10: Stock markets ended lower on a week to week basis for the fifth consecutive Friday as investors unwound long positions on Friday. The Bombay Stock Exchange Sensex lost another 27.01 points even as cyclical stocks remained weak and selling at higher levels in infotech shares ensured the market remained volatile.
Heavy cash margins on transactions and reports of income-tax raids on Calcutta stock brokers affected trading sentiments with operators resorting to selling spree in software and telecom shares amidst volatile trading. The broad market continued to be weak with decliners beating advancers 1,165 to 665. Share prices and indices jumped up and down, keeping investors on tenterhooks throughout the session.
Brokers said that income-tax raids on stock brokers in Calcutta sent shock waves among the broker fraternity here, but the income tax commissioner8217;s clarification to the BSE later cooled down the panic to some extent. The fall was led by Satyam Computer, Visual Software, Aftek Infosys, Mastek, HFCL, Hughes Software, Pentamedia, DSQ Software, Polaris Software, Leading Edge, Aptech, Infotech Sterlite, Zee Telefilm, Silverline and Shayam Telecom.
Brokers said the downtrend which had begun as a correction after the benchmark Sensex touched a record high of 6,150.69 points on February 14 picked pace after the federal budget. Finance Minister Yashwant Sinha8217;s budget for 2000-01 announced on February 29 disappointed the market which was expecting stronger steps to curb the fiscal deficit. Expectations of specific measures to help certain industries were also belied, brokers said.
The market had expected the favoured software sector to be given more tax breaks and the pharmaceutical industry to be given tax breaks for research and development expenses, none of which happened. quot;There was nothing in the budget and disappointed investors had started offloading. Also, the market had become top-heavy after running up to over 6,000 and people thought it was a good time to exit,quot; said Ramesh Damani, broker at the Bombay exchange.
