Tech Scrips Slip On Dull Us Outlook

The BSE sensitive Index (Sensex) shed most of the day's gains to close up 11.43 points at 3,323.50, off its intraday high of 3,350.44 points. Brokers said the gains in stocks were capped as the mood in the market had turned cautious in view of the fragile peace at the border. The broader NSE S&P CNX Nifty Index rose 3.20 points at 1,088.90.

Select old economy and public sector pivotals gained, while technology stocks slipped following the bearish outlook for the US economy, which accounts for about 60 per cent of the IT industry's export revenue. Foreign funds were net sellers of equities worth Rs 114.9 crore on Friday.

 

Cigarette major ITC settled up 1.71 per cent at Rs 624 on reports that the government is considering a ban on `guthka'. Rumours that the Unit Trust of India is selling a part of its stake in the company to British American Tobacco also boosted the scrip. Ranbaxy Laboratories advanced from a low of Rs 843 to Rs 870.40 before settling at Rs 867.05, up 2.05 per cent over Friday's close.

Both Reliance Industries (up 1.21 per cent at Rs 285.10) and Reliance Petroleum (up 0.80 per cent at Rs 25.25) advanced. Reliance Industries is reportedly considering replacing $400 million in high-cost foreign currency bonds by low-cost loans. However, FMCG giant Hindustan Lever ended down 0.69 per cent at Rs 194.50 on fund-based selling.

Among public sector units, State Trading Corp, at Rs 185.50, was frozen at the 20 per cent upper limit of the circuit breaker on hopes that aggressive bidding will take place for the government stake in the company. Gujarat Alkalies (up 20 per cent to Rs 30.60), Gujarat Mineral Development (up 12.10 per cent to Rs 131.10), GSFC (up 6.22 per cent to Rs 39.25) and TN Newsprint (up 5.16 per cent to Rs 47.90) remained firm on hopes that their divestment is in the pipeline.

Tech-bellweather Infosys Technology slipped 0.5 per cent to Rs 3,374.65 and Wipro dipped 0.6 per cent to Rs 1,575. NIIT (down 5.10 per cent to Rs 258.75), Mascot Systems (down 1.98 per cent to Rs 230.75), Hughes Soft (down 1.22 per cent to Rs 226.40), SSI (down 0.99 per cent to Rs 154.95), Wipro (down 0.63 per cent to Rs 1,575) and Digital GlobalSoft (down 0.60 per cent to Rs 641.40) ended lower.

Telecom stocks like Usha Beltron (up 16.89 per cent to Rs 39.10), Birla Ericsson (up 10.55 per cent to Rs 26.20), Vindhya Telelink (up 7.63 per cent to Rs 49.40) and Bharti Tele-Ventures (up 6.28 per cent to Rs 35.55) spurted on reports that the government may consider hiking FDI limit in the sector to 74 per cent.