Fall in IT Stocks Snaps Stock Market Rally
MUMBAI | MAY 19, 2009
Fall in Wipro and Infosys' shares snapped an initial rally in the stock market, which today ended flat
after yesterday's record 2,111 points surge.
There was a rush of buy orders, but profit booking as also heavy selling in the IT counter following a
sharp rise in value of rupee against US dollar negated the gains.
The Bombay Stock Exchange 30-share barometer ended the day at 14,302.03, marginally up 17.82
points or 0.12 per cent from its previous close.
Infosys Technologies dropped 11.65 per cent to Rs 1,563.75 and Wipro 9.13 per cent to Rs 385.90
as investors offloaded position over concerns that a stronger rupee could affect their earnings, which
come mainly from the US.
The rupee closed at 47.78/80 to a dollar. As late as April, the rupee was trading at 50-level to the
greenback.
Although the global markets were strong, investors preferred to book profits at existing higher levels,
facilitating an intra-day correction after a huge gain yesterday of 2,110.79 points or 17.34 per cent.
Sensex today swung between 14,930.54 and 13,834.13 points.
SMC Capitals Equity Head Jagannadham Thunuguntla said: \"Today's market movement was
more about volatility and volume. Traders came with a vengeance as they did not get a chance to
participate in yesterday's rally. Though the market is appearing to be stable, there is huge difference
in terms of stock level.\"