Tech Stocks Slump, Re At 2-Year High

Technology stocks came under renewed selling pressure in a market spooked by the rising rupee.

The spot rupee pierced the 47-mark to touch an intra-day high of 46.9750/9850 against the dollar and closed at a 23-month high of 47.

The dollar weakness triggered a fresh selling pressure in technology stocks, pulling down the 30-share Bombay Stock Exchange (BSE) sensitivity index (sensex) by 12.69 points to 3043.83, snapping its four-session winning streak.

The six-month forwards crashed to 0.71 per cent (annualised), losing 43 basis points from its closing level on Friday. The one-year forwards closed at 0.77 per cent after opening at 1.13 per cent.

The selling of technology stocks was triggered by rumours that overseas clients were pressing for lower billing rates on a weak dollar.

Software bellwether Infosys Technologies dragged down the market on speculation that a large client was likely to negotiate lower billing rates. The stock closed 6.8 per cent lower at Rs 2,788.95.

Satyam Computer was down 5.53 per cent to Rs 168.30, while HCL Technologies edged down 1.70 per cent to close at Rs 139.15.