Sensex tumbles by 121 points

MUMBAI, FEBRUARY 15: Stock markets ended lower on Tuesday as investors took profits after last week's stunning gains. The Bombay Stock Exc...

MUMBAI, FEBRUARY 15: Stock markets ended lower on Tuesday as investors took profits after last week8217;s stunning gains. The Bombay Stock Exchange Sensex tumbled by another 121 points following massive bull liquidation by market players.

The Securities and Exchange Board of India SEBI has imposed an additional five per cent margin on ten leading info-tech shares with effect from Wednesday. These include: Zee Telefilms, Infosys Technologies, NIIT, Satyam Computer Services, Himachal Futuristic, Pentamedia Graphics, Global Tele-Systems, Digital Equipment India, Silverline Technologies and DSQ Software.

Reflecting the downtrend, BSE Sensex which opened at 5797.31 points lower by nearly 127 points from the previous close of 5924.31 points shot up to touch 5941.88 points and then again fell down sharply to touch the day8217;s low of 5774.32 points before closing at 5803.19 points, showing a net loss of 121.12 points from the previous close.

8220;Margin pressures and overnight losses in Indian ADRs listed on the Nasdaq affected sentiment in infotech stocks and various frontline stocks in the sector ended lower,8221; said a broker. Infosys Technologies fell Rs 779.95 and closed at Rs 9,980 tracking huge losses in its ADR on Monday. Other losers in the sector were Visualsoft down Rs 351 at Rs 8,499, NIIT Rs 235 at Rs 2,740, SSI Ltd Rs 147 at Rs 4,288 and Polaris Software Rs 137.60 at Rs 2,036.40.

The IT sector also yielded some gainers on fund support and portfolio buying. These were Wipro up by Rs 524 at Rs 7,074.40, Sonata Software up Rs 201.40 at Rs 2,719.10, Leading Edge Technologies Rs 166.15 at Rs 2,243.40 and HCL Technologies up Rs 155.10 at Rs 2,488.90. Analysts said the outlook for the sector remains strong with short term movement driven by the technology-laden Nasdaq and the direction of Indian ADRs.