IT stocks pull Sensex down 99 points

Subex Azure witnesses biggest fall in five years.

The Sensex had its biggest fall in almost a month. Information technology stocks led by Tata Consultancy Services pull down the Bombay Stock Exchange's benchmark index by 99.37, or 0.6 per cent, to 15,504.43, its biggest decline since August 21.

Subex Azure, a maker of anti-fraud software for telecommunications companies, had its biggest drop in more than five years after cutting its largest business unit's profit estimate for the year by a third and the division's sales forecast by about 15 per cent.

The S&P/CNX Nifty Index on the National Stock Exchange slid 0.5 per cent to 4,494.65. Nifty futures for September delivery declined 0.6 per cent, to 4,483.90.

"Subex cutting its estimates seems to have caused some nervousness among investors for software developers,'' said Mahesh Patil, who helps manage the equivalent of $5.9 billion in assets at Birla Sun Life Asset Management in Mumbai.

Subex dropped Rs 64.5, or 13 per cent, to Rs 445.1, its biggest decline since May 20, 2002.

Profit from its products unit for the year ending March 31 will be Rs 104 crore ($26 million), less than an April forecast of Rs 155 crore, Subex said in a release September 14. Its sales forecast was cut to Rs 520 crore from Rs 615 crore after a North American client, which it didn't name, postponed an order.

The profit warning prompted UBS AG today to cut its price estimate on the stock by 9.5 per cent to Rs 760 a share, saying AT&T Inc had reduced its budget for capital expenditure by 20 per cent in July and had cut back on orders to the company.

Tata Consultancy, the country's largest software exporter, fell Rs 25.25, or 2.5 per cent, to 997.35. Infosys Technologies, the second biggest, dropped Rs 24.7, or 1.4 per cent, to Rs 1,805.6. Satyam Computer Services, India's fourth-largest computer-services provider, slid Rs 8.5, or 2 per cent, to Rs 422.2.

Indian software companies get about 60 per cent of their sales from the US.

Overseas investors sold a net Rs 46.6 Crore of Indian shares on September 13, according to the latest information on the Securities & Exchange Board of India website.