The Hindu Business Line : Banking, IT, VSNL see big fall

It was a mixed week for the US bourses with S&P-500 and Nasdaq slipping even as the Dow Jones Industrial Average inched up. While concern over interest rate hike weighs down the sentiment, strong show by Alcoa, General Motors and Boeing Co checked the market slide. As a result, the S&P-500 and Nasdaq slipped by 0.5 per cent and 0.6 per cent respectively while Dow gained 0.2 per cent.

The domestic bourses witnessed a bear hammering following heavy withdrawals by foreign institutional investors; the BSE Sensex slumped 3.04 per cent and the NSE's S&P CNX Nifty by 3.16 per cent.

Following the US markets, most of the Indian ADRs witnessed a sharp correction. Among the major losers were HDFC Bank and ICICI Bank.

Tech counters witnessed sharp declines. While Infosys slipped to $74.9801 ($75.85), a drop of 1.14 per cent, Satyam slumped 4.6 per cent to $37.39 ($39.19), Wipro by 5.8 per cent to $13.71 ($14.55) and Patni Computer by 4.16 per cent to $19.12 ($19.95).

Meanwhile, Infosys Technologies Ltd announced a robust earning estimates for the next year and higher net profit for the fourth quarter ended March 31, 2006.

It announced a 21-per cent surge in fourth quarter profit and forecast earnings per share will rise by 28.4 per cent this year.

However, Dr. Reddy's Laboratory, the lone gainer during the week, finished on firm note at $32.4 against the previous week close of $31.75. The company announced that it received the US FDA approval for allergy drug fexofenadine hydrochloride tablets.

VSNL and MTNL were the other major losers; after touching a 52-week high at $9.16, the MTNL slid sharply to end $8.13 ($8.60). VSNL crashed by over 10 per cent at $19.23 ($21.5).

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