IT scrips at 15-month low

The BSE-IT index closed on Monday at a 15-month low of 4,135.14 as 22 technology stocks includes, Infosys Technologies (Rs 1,620), TCS (Rs 960.05), i-flex Solutions (Rs 1,225), Patni Computer Systems (Rs 311) and MindTree Consulting (Rs 406.62) ended at a year's lows.

In international markets, American Deposits Receipts (ADR) of Infosys Technologies ($42.01) and Patni Computer Systems ($15.74) closed at 52-week lows on Friday, while the Wipro ADR ($13.47) hovered around its year's low.

The IT index was the second-largest loser after the BSE Realty index, which fell 2.78 per cent against 0.90 per cent drop in the Sensex. The IT index declined by 118.11 points against its previous day's close of 4,253.25 on BSE.

Infosys Technologies, Satyam Computer Services, Patni Computer Systems and Tech Mahindra declined more than 3 per cent each, while Wipro, TCS, HCL Technologies, Rolta and Financial Technologies fell in the range of 1 per cent to 3 per cent each on Monday.

The IT index, which has been a major underperformer among al sectoral indices, fell by 10.8 per cent against the 6.2 per cent decline in the Sensex in the last one week.

However, in the last one year, the IT index declined 14.9 per cent compared with 41.1 per cent rise in the Sensex. The index fell by 724.15 points from 4,859.29 on November 10, 2006 to the current level, while on the other hand, the Sensex gained 5,454.36 points from 13,282.91 to 18,737.27.

Most of the frontline technology stocks are trading below the price-earnings (P/E) ratio of the Sensex.