NEW DELHI: Shares of India's bluechip software firm Infosys Technologies
struck a new low in a weakening market on Tuesday on reported foreign fund
selling and a strengthening bearish sentiment on technology stocks, dealers
said.
At 11:40 am (0610 GMT), Infosys was quoted 3.82 per cent or Rs 221.40 lower
at Rs 5,575, recovering marginally from its new low of Rs 5,500. The stock was
briefly in positive territory in early deals on reported short covering, but
succumbed to persistent selling pressure. The share fell faster than the
30-stock benchmark Bombay index, which was down 1.64 per cent at 3,841.99
points.
The share was quoted at Rs 7,531.85 on December 14 and has fallen by 26 per
cent over seven trading days.
"Some foreign funds have turned sellers, in addition, the Infosys ADR
has been slipping on the Nasdaq," said Taib Securities director Girish
Nadkarni. "The general fund manager view on tech stocks has turned bearish,
the earlier support that was witnessed on the share is no longer there."
Infosys enjoys the highest weightage in the benchmark Bombay index. The
carry-forward position on December 22 for Infosys stands at 564,000 shares.
A dealer with an institutional brokerage said there was intense selling
pressure on Infosys and the share was still headed lower as the fund preference
was now shifting towards engineering and cement stocks.
"In any upward move on the Sensex, Infosys is unlikely to
participate," Nadkarni added. "The stock could move lower to between
Rs 5,200-5,300 levels."
At Rs 5,575, Infosys is 60 per cent below its calendar high of Rs 13,812.90
struck on March 8.
(C) Reuters Limited 2000.