Infosys feels UBS heat

DALAL STREET SPIKES

IT major, Infosys Technologies witnessed selling pressure as the stock is among top holdings in UBS's portfolio. Dealing room sources said, the counter witnessed selling pressure in morning trades on reports that UBS held 3 per cent stake in Infosys as of March 31, 2005.

Infosys stock closed at Rs 2,043.3, down 1.02 per cent from its previous close after hitting the day's low of Rs 1,991. More than 4.44 lakh shares were traded at the counter on the BSE.

Sources said, the sentiment turned cautious towards UBS stocks. UBS Securities was banned by Sebi yesterday from issuing offshore derivatives instrument (ODIs) with underlying Indian securities. The ban is for one year with respect to its role in the market crash on Black Monday (May 17, 2004).

Besides issuing a one-year ban from issuing fresh ODIs, Sebi has also barred UBS/ its affiliates/ agents from renewing or rolling over any of the ODIs already issued against the positions held by it in the Indian securities market for a term of one year.