Our Markets Bureau

Mumbai, June 14: The revised Nasscom software sector growth estimations and Nasdaq declining last night by 2 per cent on the news of fresh earning warnings seems to have affected market sentiments.

The BSE benchmark Sensex was down 47.84 points at 3,453.77, against the previous close of 3,501.61.
All local funds and foreign institutional investors (FIIs) were sellers in the new economy stocks as operators started battering the stocks around mid-session.

The news of HFCL partners splitting and the company facing cashflow problems pulled the stock (one of the favourites in the speculative counter) down.

Kale Consultants, a profit-making company declaring loss of Rs 6.74 crore in the FY-01 was also a dampner.
Major losers were HFCL, Crest Communication, BFL, Odyssey Technology, RS Soft, TV 18, DSQ Software, Mastek, Wipro, Digital, NIIT & SSL.

The BSE IT index was also down by 50.17 points at 1,672.38 against previous close of 1,722.55.

Except for K10 scrips, volumes were low across the board. Telco declined ahead of its declaration of FYO1 results on Thursday.

The company declared a loss of Rs 500 crore. The stock was down by 2.66 per cent and closed at Rs 71.55.
The other reason for the downturn in sentiments was the rupee again breaching the level of 47 and the industrial growth lowering this month compared to last month.

The news of government reviewing FII investments through Mauritius route and regulator’s move of re-introducing the stock watch system also proved to be a dampner, said the dealers.

Investors seem to be at bay and waiting till July 2, 2001 to see the new systems in the market, they added.
The news of Tata Infomedia declaring a bonus also did not help the counter to move ahead. The stock of Bombay Dyeing moved up sharply, on the optimism of attractive price for the buy back of its shares. The stock moved up 12.2 per cent to close at Rs 51.55.

Major volumes were seen in Satyam, Zee, Digital, Global, HFCL, ACC, Reliance, Pentamedia, Saw Pipes, DSQ Software, Bombay Dyeing, Silverline and Reliance Petroleum Limited.