The attack on Parliament today gripped the market. Software, media and telecom sector stocks, recently riding on the back of momentum buying, fell like ninepins.
The stocks that were hit most during the day were those which were operator- and speculator-driven, sources said.
Technology stocks lost ground, dragging down the other two sectors of the new economy -- telecom and media. Buying in select defensive sector and old economy stocks was witnessed towards the close of the session. But the overall mood on the market was bearish following the terrorist attacks.
Tech pivotals NIIT (down 6.76 per cent to Rs 241.50), Satyam Computer (down 4.37 per cent to Rs 254.80) and Infosys Technologies (down 2.58 per cent to Rs 4,296.80) lost further ground on selling pressure, although they recovered from the lower levels. DSQ Software closed at Rs 63.60, down 10.6 per cent while Silverline dipped 9.2 per cent to close at Rs 72.95.
Zee Telefilms (down 3.73 per cent to Rs 134.35) came off from the day's high of Rs 143 on selling pressure following the attacks.
The company's board today approved the formation of a joint venture with Turner International India, an AOL Time Warner unit, for distributing each others' channels. Zee will hold a 74 per cent stake in the new company. Over 2 crore shares of Zee were traded on BSE and NSE combined.
At least 18 stocks in the software, media and telecom sectors were down by 8 per cent to 16 per cent, while the BSE Sensex was down 23 points at the close.
Among software scrips, Cybertech (down 16 per cent to Rs 29.85), Orient Information Technologies (down 16 per cent to Rs 71.55), Onward Technologies (down 15.67 per cent to Rs 48.70), Zensar Technologies (down 14.75 per cent to Rs 96.80) and Kale Consultants (down 14 per cent to Rs 54) were among the big losers.
However, later at the close, all these stocks recouped losses marginally but closed more than 10 per cent lower.
In the media sector, Sri Adhikari (down 14.9 per cent to Rs 124), Jain Studios (down 14.4 per cent to Rs 46.60), Pentamedia Graphics (down 13.18 per cent to Rs 65.20) and Crest Communications (down 12.8 per cent to Rs 70.40) were the top losers.
Shyam Telecom (down 12.45 per cent to Rs 59.75), Himachal Futiristic Communications (down 10 per cent to Rs 117.85) Krone Communications (down 8 per cent to Rs 97.85) and Sterlite Optical Technologies (down 7.9 per cent to Rs 179) were the major losers in the telecom sector.
Himachal Futuristic Communications plunged on a huge combined volume of 4.5 crore shares on both the BSE and the NSE on massive unwinding by traders, who had built up huge positions on the counter in the last few days when the scrip had entered the no-delivery period.
Dealers said investors and traders were resorting to lightening of their positions following the attacks. Soon after the news started trickling in, hectic short selling saw the Sensex plunge over 100 points at about 12:00 noon.
