Selling Spree Spoils The Day

Stock markets declined for the third consecutive session today on sustained selling in select new as well as old economy stocks. Lack of positive driving forces at home and worries over a slowdown also weakened the sentiment, they said. Unit Trust of India was the major seller of the day.

The Bombay Stock Exchange Sensex settled with a loss of 13.75 points or 0.42 per cent at 3,286.87 points. With today's loss, the Sensex is down 17.25 per cent for the year. The National Stock Exchange's S&P CNX Nifty Index shed 3.30 points to close at 1,064.15 points.

Infosys Technologies (down 0.97 per cent to Rs 3,709.10) declined sharply from the day's high of Rs 3,833 on renewed selling pressure at higher levels. The stock had shed nearly five per cent on Wednesday on institutional unloading.

NIIT (down 2.79 per cent to Rs 167.45) also ended with losses, retreating sharply from its day's high of Rs 175. Satyam Computer recovered from a low of Rs 170.90 to Rs 177.40 before settling at Rs 173.85, up 0.26 per cent over its previous close. Over 43.35 lakh shares were traded on the BSE.

Other frontline software stocks such as HCL Technologies (down 3.37 per cent to Rs 235.25), Hughes Software (down 3.64 per cent to Rs 506.10) and Polaris Software (down 1.46 per cent to Rs 128.15) ended in the negative zone.

Meanwhile, Aftek Infosys (up 10.90 per cent to Rs 110.40) jumped on speculative buying, Geometric Software (Rs 71.65) hit the eight per cent upper limit of the circuit breaker.

Momentum stocks such as Global Tele-Systems (down 1.96 per cent to Rs 105.25) and Himachal Futuristic Communications (down 0.47 per cent to Rs 53) also lost ground. Zee Telefilms bucked the weak trend and closed up 3.64 percent to Rs 121 on renewed buying support at lower levels.

Among old economy stocks, Wartsila India (Rs 82.85) remained frozen at the 20 per cent upper limit of the circuit breaker after Wartsila Corporation -- the company's Finland-based parent -- made a voluntary open offer to the shareholders of the company to buy out 49 per cent equity stake in the company at Rs 120 per share.