Infotech stocks savaged on Street

Mumbai, Nov 28 | Updated: Nov 29 2006, 09:04am hrs
Technology stocks took a hit on Tuesday as concerns over the valuation of Internet company Google Inc dampened investor sentiment on US bourses. The tech pack was down in the US, with the American depository receipts (ADRs) of Indian technology majors also sliding.

The BSE IT index also shed nearly 2.50% to end the day as the worst performer. The index comprises ten stocks, all of which ended the day in the red.

The ADR of Infosys Technologies was down nearly 4%, or $2.09, to close at $51.47 on Monday, while Wipros ADR fell over 2% to close at $15.22. The ADR of Satyam Computer lost 3.53%, or $0.84, to close at $22.93.

At home, Infosys, Wipro, Satyam and TCS all ended Tuesday with losses. Infosys, Wipro and Satyam lost in a range of 3-4% and TCS lost less than 1%. Analysts said the tech tumble was largely due to valuation worries in the US, prompting investors to sell in overseas markets. A rising rupee also acted as a catalyst with many investors resorting to profit-booking at higher levels.

Patni Computers, Mphasis BFL, i-Flex, Hexaware, HCL Technologies, Geometric Software Solutions, CMC, Kale Consultants, Tulip IT Services and Sasken Communication Technologies also ended the day in negative territory.