Tech stocks take a beating

MUMBAI, JUNE 9: Stock markets turned volatile on Friday with most of the leading technology stocks showing extreme fluctuations. Despite t...

MUMBAI, JUNE 9: Stock markets turned volatile on Friday with most of the leading technology stocks showing extreme fluctuations. Despite the volatility in frontline stocks, the BSE Sensex closed at 4727.63, a net loss of 1.18 points over the previous close.

According to brokers, the higher levels are turning out to be supply zones and it is primarily “wait and watch since the trend is still not clear.”On Friday, the last day of trading in the current settlement, although a number of frontline infotech stocks closed lower, a lot of interest was generated in a number of other non-IT stocks, MTNL and Colgate-Pamolive leading the pack.

While the Sensex remained in a narrow range, a large number of software stocks showed wild movements on Friday. The volatility factor was again at its peak in software stocks. Stocks like Silverline, HFCL, Global Tele, DSQ Soft, Infosys and Satyam Computers showed extreme moves and lost ground. Meanwhile, with sustain buying from all fronts, old economy stocks remained strong for a major part of the day.

MTNL hit the 12 per cent circuit. Telco, Grasim, ACC, L&T and SBI also attracted huge buying. Reliance also attracted buying but failed to sustain the uptrend, and fell sharply in the second half of the day. Meanwhile, the BSE sensex opened at 4772 points, touched a peak of 4797.59 points, the low for the day was 4712.21 points. It closed at 4727.63 points. The S&P CNX Nifty opened at 1464.30 points, touched a peak of 1485.50 points and closed at 1465.70 points. The low for the day was 1458.90 points.

On the BSE, the number of advances stood at 692 and the number of declines was at 846, Around 170 stocks remained unchanged. Meanwhile, stocks which gained more than 7.9 per cent were MTNL, IPCL, Bom Dyeing, Tata Power, Escorts, Frontier Info, Computech, Voltas, Nat Radio, Kaashyap Rad, ITI, KLG Systel, Mirc Elect, GIPCL, Alps Info, Hotel Leela. Other gainers for the day were Telco, BSES, Century, IDBI, UPL, Tata Chem, Melstar Info, Arvind Mills, Octogon Tech, Fintech Com, Ami Computers, Sibar Software.

Stocks which dipped more than 7.9 per cent were HFCL, Sun Pharma, Goldstone Tech, Excel, Denim Ent, Vikas WSP, Gramophone, Jupiter Orga, Bits, Vakrangee, Mastek, PCS, Salora Int, Hinditron. Other losers for the day were Zee Tele, DSQ Soft, Pun Tractors, Cadila Health, Shyam Tele, Crest Com, Datapro Info, BEL, Color Chips, Fujitsu, Hoechst Mar, Tata Telecom and Nocil.

Rupee falls by 4 paise

MUMBAI:The Indian rupee fell by four paise against the US greenback to close at a new record low of 44.76/78 on sustained corporate dollar demand at the interbank foreign exchange (forex) market today. The rupee opened a bit lower at 44.73/75, moved downwards and slipped to the day’s low of 44.81/83 in the morning as heavy dollar demand from corporates and foreign banks exerted pressure on the Indian currency.

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However, State Bank of India (SBI) reportedly pressed dollar sales after which the Indian unit recovered part of its intra-day loses. Some foreign banks and exporters also sold the US currency later. But the supply still fell short to match corporate demand, dealers said. The rupee closed at 44.76/78, about four paise lower from the previous day’s close of 44.72/7350.

The rupee which dipped to a historic low of 44.95 on Thursday, recovered smartly after the Reserve Bank of India (RBI) intervention in the forex market warning bankers against speculation and directive to unwind all long dollars for the day.