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Follow UsMUMBAI, INDIA: After a great record run of 14 months' high for the past few weeks, today the stock market hit below the 15,000 mark. The Bombay Stock Exchange (BSE) lost 626 points in a single day trading and closed at 14,784.92 points, which is a sharp decline of over 4 per cent. The National Stock Exchange (NSE) lost under 200 points and closed at 4387.90 points.
The fall of the market has given a weak opening to this week's trading sessions. However, the stock market's avalanche had the snowball effects on the IT and telecom shares, which had been strongly traded in the past and had played a key role in pushing the indices up.
Both, BSE IT and CNX IT indices were down by nearly three per cent. BSE IT with loss of 109.88 points ended at 3867.85, Nifty's CNX IT went down by 2.91 per cent losing 127 points closing the day at 4264.15 points.
According to India Infoline's IT analyst Rajiv Mehta, the sharp decline in the stock market today is mainly to due to global cues and stock markets across world.
“Even in previous weeks, due to rains and drought situation, the market had a bit of correction and this is the possible impact of those situations. But the market is under consolidation and correction is going on at the moment,” said Mehta,
Further he added, “The impact on IT and telecom stocks is more related to global markets with the situation of business recovery in the US and other markets, but it's lots of sentiments and fundamentals been played in the market.”
In fact, the biggies from the IT sector such as Infosys, Wipro, TCS, Satyam, Tech Mahindra and HCL Technologies lost valuation ranging from about 2–5 per cent today.
On BSE, Infosys Technologies Ltd was down by 2.78 per cent at Rs.1983.05; Wipro, was traded down by Rs.13.75 at Rs.496.40, Tata Consultancy Services lost Rs.9.90 per share and closed the day at Rs.510. 70.
Other tech shares such as Satyam Computer Services Ltd., slumped to Rs.100.45, and Tech Mahindra with a fall of 4.48 per cent closed at Rs. 805.45. HCL Infosystems was down by 5.32 per cent at Rs.125.45 and also HCL Technologies Ltd, with loss of Rs.10.40 ended the day at Rs.259.90.
Meanwhile, on NSE, Infosys Technologies was down nearly by 3 per cent with loss of Rs. 59.85 per share and closed at Rs. 1982.50. Wipro slided to Rs. 496.95. TCS incurred about Rs.12 loss closing the day at Rs.510.15.
The downfall continued on IT stocks even on NSE, where Satyam Computer Services Ltd ended at Rs.100.40. Tech Mahindra, closed at Rs. 805.65 with Rs.38.60 loss per share. Bharti Airtel Ltd incurred a loss of Rs. 8.80 on BSE and Rs.10 on NSE closing the day at Rs.399.15 and Rs. 398.75 respectively. Similarly, Idea Cellular Ltd was weak down at Rs. 76.35 on BSE and Rs. 76.70 on NSE.
It's been a week opening for the IT and Telecom shares; however, the market pundits are expecting the shares to recover within the remaining days of this week.