Techs take a pasting

STOCKS REPORT

Massive hammering in technology stocks dragged down key indices following concerns over the growing US opposition to jobs outsourcing. The Bombay Stock Exhcange's (BSE) technology index, BSE TecK, fell 1.58 per cent to close at 1,191.31.

Further, investors booked profits at oil, cement and steel counters, which led the recent rally. Select pharmaceutical stocks, however, bucked the trend and witnessed some fund buying.

Traders said the market was also spooked by the test-firing of an intermediate-range nuclear-capable missile by Pakistan.

The Bombay Stock Exchange's 30-share Sensex, the benchmark index, tumbled 84.58 points, or 1.43 per cent, to close at 5,850.61, but off day's low of 5,794.82.

The National Stock Exchange's S&P CNX Nifty, a broader index, declined by 19.20 points, or 1.02 per cent, to end at 1,866.05. The market breadth was negative with losers outnumbering gainers by two to one in fairly choppy trade.

"There was a lack of conviction at higher levels, and buyers were not willing to lend support at lower levels either," said a dealer with a local brokerage.

"The gains seen during the last two sessions were on very thin volumes, and unless we see a pickup, the current rally cannot be sustained."

Shares in Infosys Technologies fell by nearly three per cent to close at Rs 4,970.32, off from its day's low of Rs 4,870.55, after the California state administration's rejection of its plea seeking tax relief under an alternative filing methodology permitted by the California tax code.

Wipro, the third largest software exporter, fell by 0.81 per cent to Rs 1,428.70. Satyam Computer shed 1.55 per cent to Rs 298. Media major, Zee Telefilms lost 4.54 per cent to Rs 122.90 on selling pressure.

Oil major ONGC's shares lost 1.56 per cent to end Rs 837.60, off from day's high of Rs 872.00, on profit booking after recent gains.

HPCL dipped by 3.55 per cent to Rs 511.45, offday low of Rs 502.60 on profit booking. The stock had gained over 6 per cent on Monday.

Dredging Corporation of India shed 1.33 per cent to Rs 590.55) dipped from the day's high of Rs 642.80. Shares in GAIL, however, surged by 1.80 per cent to Rs 234.30 on sustained buying interest.

Cement major ACC fell by nearly two per cent to Rs 272.15 and Grasim Industries fell more than four per cent to Rs 1,170.15.