Tech stocks, led by Infosys Technologies, dragged down the market on Monday amid concerns about the pressure on billing rates and a rising rupee.

Snapping its four-session winning streak, the 30-share BSE Sensitive Index (Sensex) settled with a loss of 12.69 points at 3,043.89.

The NSE S & P CNX Nifty Index shed 6.55 points to close at 966.55

Apart from the slide in tech stocks, stocks of public sector undertakings (PSUs) and pharma companies also lost ground on selling pressure. Gains in select Old Economy stocks were hardly enough to lift the market into the positive zone. Stock-specific activity continued on the side counters.

Meanwhile, stocks of small-cap and mid-cap companies, which have improved their performance in the recent past on restructuring and cost control, remained in the limelight. Investors were also looking at high-dividend yield stocks, as the real interest rates in the economy have come down substantially in recent years. At the same time, many companies are declaring higher dividends, which have become tax-free in the hands of investors.

Infosys Technologies (down 6.82% to Rs 2,788.95) lost ground, coming off from the day's high of Rs 3,047, on selling pressure following rumours that a major client of the company has cut billing rates. There have been rumours of the company deferring its proposed sponsored American Depository Receipt (ADR) issue. Over 5.91 lakh Infosys shares were traded on the BSE.

Weakness on the Infosys counter dragged down other tech pivotals like Satyam Computer (down 5.53% to Rs 168.30) and HCL Technologies (down 1.70% to Rs 139.15).

HPCL (down 5.26% to Rs 292.45) lost ground amid the concerns about the progress of the PSU refining major's disinvestment. Over 9.14 lakh HPCL shares were traded on the BSE.

Other PSU pivotals like MTNL (down 0.78% to Rs 95.25) and Bhel (down 0.61% to Rs 254.45) also ended lower on selling pressure after recent gains.

Pharma pivotals like GlaxoSmithKline (down 1.30% to Rs 347.95), Dr Reddy's Laboratories (down 0.76% to Rs 833.35), Ranbaxy (down 0.67% to Rs 638.55) and Cipla (down 0.23% to Rs 651.85) slipped on selling pressure after recent gains.

Telco (up 3.02% to Rs 161.95) gained ground on sustained buying support following hopes of improved quarterly results. Over 9.20 lakh Telco shares were traded on the BSE.

Grasim (up 2.96% to Rs 367.20), L &T (up 2.31% to Rs 212.35) and Gujarat Ambuja Cements (up 0.94% to Rs 177.70) rose on hopes of improved cement off-take.

Heavyweights like Hindustan Lever (up 1.33% to Rs 148.20), State Bank of India (up 0.62% to Rs 318.05), ITC (up 0.35% to Rs 701.10) and Reliance Industries (up 0.22% to Rs 269.05) also ended with modest gains.

Non-Sensex frontline tech stocks like Hughes Software (down 7.69% to Rs 203.40), Polaris Software (down 5.34% to Rs 128.40), Mascot Systems (down 5.70% to Rs 101) NIIT (down 4.44% to Rs 125.85), Wipro (down 4.42% to Rs 902.70) and Digital GlobalSoft (down 2.29% to Rs 524.80) declined on selling pressure.

The sustained strengthening of the rupee against the US dollar has also affected the sentiment for software stocks. The Indian software sector earns a major portion of its revenues in dollars and the strengthening rupee is expected to affect the individual companies' earnings, feel analysts.

The rupee strengthened further today to touch its 23-month high of 46.95/96 against the greenback.

Moser Baer (down 5.49% to Rs 273.95) eased on selling pressure after the company announced that the European Commission has proposed a countervailing duty of 7.3% on the value of imports of CD-R's originating in India. Over 1.18 lakh MBIL shares were traded on the BSE.

Allahabad Bank (down 5.65% to Rs 16.70) lost ground after the bank announced its results last Saturday. For the quarter ended 31 March 2003, the bank posted a net profit of Rs 55.73 crore (Rs 41.59 crore) on total income of Rs 846.35 crore (Rs 740.85 crore).

Oriental Bank of Commerce (down 3.70% to Rs 117.10) ended lower, coming off from the day's high of Rs 125.85 on selling pressure, after the bank announced its results. For the quarter ended 31 March 2003, the PSU bank posted a net profit of Rs 119.49 crore (Rs 63.80 crore) on total income of Rs 918.60 crore (Rs 997.66 crore).

Other bank stocks like Canara Bank (down 4.77% to Rs 99.80), Corporation Bank (down 4.75% to Rs 152.25), Karur Vysya Bank (down 4.58% to Rs 195), Bank of India (down 4.40% to Rs 43.45) and Federal Bank (down 3.40% to Rs 117.95) also slipped on selling pressure after recent gains.

ING Vysya Bank (up 7.37% to Rs 290) gained further ground on sustained buying support after the private sector bank announced its results last Friday. For the year ended 31 March 2003, its net profit stood at Rs 22.67 crore (Rs 10.16 crore) on total income of Rs 345.26 crore (Rs 329.65 crore). The bank's board proposed a divided of 45% for FY 2002-03.

RCF (down 10.34% to Rs 22.55) crashed following disappointing results from the company. For the quarter ended 31 March 2003, it posted a net profit of Rs 59.19 crore (24.04 crore) on total income of Rs 650.66 crore (Rs 576.66 crore). For the year ended 31 March 2003, the company posted a loss of Rs 48.07 crore (NP Rs 24.21 crore) on total income of Rs 2,072.43 crore (Rs 2,063.85 crore). Over 6.13 lakh RCF shares were traded on the BSE.

Source: Capital Market