Those War Clouds Again

After trading in an intra-day range of 32 points, the Bombay Stock Exchange (BSE) sensex finished 13.96 points lower at 3,247.51, as investors refrained from taking fresh positions on concerns of an imminent US-Iraq war.

Apart from select bank and cement stocks, selling pressure was seen almost across-the-board.

Meanwhile, at the National Stock Exchange, the S&P CNX Nifty index closed 3.55 points lower at 1,044.45. Losers outnumbered gainers on thin volumes.

Overnight losses in US markets pushed technology stocks lower.

Tech major Infosys Technologies declined 1.64 per cent to Rs 4,175.95 on sustained selling pressure, following reports that the US Securities & Exchange Commission (SEC) has asked for a full review of the ADR offer document, which was filed with Nasdaq two weeks ago.

 

Infosys Technologies fell 1.6 per cent to Rs 4,175.95 following reports that its plan to convert local shares into ADRs is likely to be delayed.

Other front-line technology stocks also remained weak. Hughes Software fell 1.70 per cent to Rs 150.20, Polaris Software shed 1.76 per cent to Rs 142.60, Mascot Systems eased 3.05 per cent to Rs 117.50 and Digital GlobalSoft plunged 0.42 per cent to Rs 596.55 on selling pressure.

State Bank of India (SBI) jumped on hopes that foreign fund investment limit may be raised. The scrip rose 1.92 per cent to Rs 300.05 on renewed buying, after SBI chairman A K Purwar said the government was examining a proposal to up the 20 per cent ceiling on foreign fund holding. The stock was the second-most active on BSE with a volume of 43 lakh shares.

However, FMCG giant Hindustan Lever shed one per cent to Rs 167.75 on selling pressure. Cigarette major ITC tumbled also tumbled 0.43 per cent to Rs 629.80 as investors refrained from taking positions. Reliance Industries eased 0.35 per cent to Rs 281.45.

However, cement major ACC edged up 4.39 per cent to Rs 153.40 on sustained buying.