Infosys shares fall on fund sale talk

By : |November 30, 2000 0

MUMBAI: Shares of India’s largest software services firm, Infosys
Technologies, fell on Thursday in an otherwise flat market on talk that a
foreign fund had large sell orders on the stock, dealers said.

At 12:30 p.m. (0700 GMT), Infosys shares were 2.62 per cent weaker at Rs
7,211.00 while the benchmark Bombay index was 0.11 per cent down at 3,991.91
points.

Dealers said redemption pressure had forced the foreign fund to sell nearly
150,000 shares earlier this week and it was likely to continue sales on
Thursday.

"The supply overhang is keeping the share price under pressure,"
said a dealer with a domestic brokerage. The net outstanding position in Infosys
on the Bombay exchange rose to 293,590 shares on Wednesday from 204,815 on
Friday and dealers said this rise indicated the increased supply.

Infosys has the highest weightage, of around 17 per cent, in the benchmark
Bombay index and dealers said the overall market could be dragged down if the
stock’s weakness persists.

Infosys shares struck a calendar low of Rs 5,600 in May and it is about 47
per cent down from its calendar 2000 high of 13,812.90 in March. The company’s
shares were split in the ratio of two-for-one earlier this year.

(C) Reuters Limited 2000.

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