Low sentiments continue to hit markets

Stock market update for May 17, 2000

Trading commenced on a positive note on Wednesday as the benchmark BSE Sensex opened with a positive gap of 76 points at 4,306. Sentiments were buoyed by the passage of the IT Bill on Tuesday. As a result, fresh buying interest in new economy stocks saw the Sensex capitalize on its initial gains and held its ground firmly for most of the day. However, selling pressure at higher levels towards the end of day resulted in the Sensex shedding much of the gains made earlier in the day. It finally ended the day at 4,234, netting a modest gain of only four points during the day. According to market circles, rumors about tensions at the Indo-Pak border were the chief reasons behind the selling pressure experienced during the end session.

Infotech stocks witnessed a mixed response on Wednesday. Among the three IT stocks which find a place in the sensex Infosys Technologies remained volatile during the entire day. The stock after hitting a high of Rs 7,449 in mid-session trading declined towards the end of the day to close at Rs 6,993 up 1 per cent over its previous close. NIIT gained Rs 16 to close at Rs 1,805. Satyam Computer Services was the only loser, unable to maintain the gains made earlier in the day. It closed the day 2 per cent down at Rs 2,900.

Among the other Infotech stocks, Fujitsu ICIM hit the upper circuit of 12 per cent whereas Sierra Optima and CMC gained more than 8 per cent. Mindteck hit the 8 per cent upper limit. Other gainers during the day were PSI Data System, Maars Software, VXL Instruments, Orient Information, Cybertech, BFL and Tata Infotech. Among the losers, Transcon hit the lower limit of 8 per cent whereas Frontier Info, Amex Info, Svam Software, HCL Tech, KLG Systel and SSI were the other losers.

Though the day ended on a positive note, trading circles opine that the undercurrent is still bearish on concerns about a possible fall in India’s weightage in the Morgan Stanley Capital International (MSCI) index. Markets are expected to open on a weak note on Thursday.