IT stocks under pressure

Positive opening of the European markets was unable to lift Indian
market. The BSE 30-share Sensex was down 219.17 points. All the
sectoral indices on BSE, barring the FMCG index, were negative.
India's largest private sector bank by market capitalisation ICICI
Bank was the top loser from the Sensex pack. Shares of aluminium
makers and telecom firms declined sharply. Cement shares bucked the
weak market trend.

European markets, which opened after Indian markets, were positive.
Key indices in UK, France and Germany were up 0.08% to 0.59%.

Asian markets, which opened before Indian markets, were mixed. Key
benchmark indices in Japan, Singapore and Taiwan were down by
between 0.90% to 1.17%. Key benchmark indices in South Korea, Hong
Kong and China were up by between 0.05% to 3.64%.

At 13:25 IST, the BSE 30-share Sensex was down 219.17 points or
1.61% to 13,471.54. The index shed 247.16 points at the day's low
of 13,445.36, hit in afternoon trade. The Sensex rose 24.36 points
at day's high of 13,879.06, at the onset of trading session.

The S&P CNX Nifty was down 65.05 points or 1.56% to 4096.20.

The BSE Mid-Cap index was down 0.65% at 5,093.25 and the BSE
Small-Cap index was down 0.87% at 6,048.42.

The market breadth was weak on BSE with 787 shares advancing as
compared to 1553 that declined. 80 shares remained unchanged.

India's largest private sector bank by market capitalisation ICICI
Bank slipped 3.94% at Rs 576.70.

India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) declined 1.52% at Rs 2015.45.

India's fourth largest software exporter Satyam Computer tumbled
3.16% at Rs 323.35. Wipro (down 2.97% at Rs 359.75), TCS (down
2.11% at Rs 698.40), HCL Technologies (down 1.12% at Rs 230.40),
and Infosys Tecnologies (down 1.56% at Rs 230.40), were the other
software exporters that declined. The BSE IT index was down 2.26%
at 3,339.97.

Sterlite Industries fell 2.25% at Rs 476.60. Yesterday, 24
September 2008, the Sterlite stock had ended 8.36% higher after the
company dropped a restructuring plan. From a recent high of Rs
622.35 on 8 September 2008, the stock had tumbled 27.7% to Rs
449.95 on 23 September 2008 after parent Vedanta Resources said it
will transfer Sterlite's aluminium and energy businesses to Madras
Aluminium Company as part of restructuring. The restructuring of
the Vedanta group was planned to result in three units focused on
commodities produced by the group: copper, zinc and lead; aluminium
and energy; and iron ore.

Another Vedanta group firm Madras Aluminium slipped 4.51% to Rs
122.75.

India's largest aluminium producer by sales Hindalco Industries
fell 2.85% at Rs 105.75. It came off from a 52-week low of Rs
105.40, hit in afternoon trade. The company's Rs 5,050 crore rights
share offering for subscription Monday, 22 September 2008. The sale
in a ratio of three shares for every seven held at Rs 96 a share
will close on 10 October 2008. The company aims to use the funds to
repay a bridge loan it had taken to buy Canada's Novelis in 2007.

Telecom stocks slipped. Bharti Airtel (down 3.20% at Rs 784.45),
Idea Cellular (down 1.56% at Rs 79.10), and Reliance Communication
(down 1.44% at Rs 365), Tata Teleservice (Maharastra) (down 1.89%
at Rs 23.30), and MTNL (down 1.15% at Rs 90.10), tumbled.

Cement makers rose. India Cements (up 4.29% at Rs 134.85), Prism
Cement (up 4.91% at Rs 31), Ambuja Cements (up 1.72% at Rs 85.85),
Ultratech Cement (up 1.05% at Rs 560), ACC (up 0.40% at Rs 630.30),
rose.

Cigarette maker Golden Tobacco surged 8.61% at Rs 138.50 after the
company said on Wednesday, 24 September 2008 evening its board had
approved spinning off the tobacco and real estate businesses into
two separate companies.

Wind turbine maker Suzlon Energy dipped 5.13% at Rs 186 after the
company said its board would consider a rights issue to raise up to
Rs 1800 crore on 27 September 2008. According to reports, the
investors were worried the issue would lead to equity dilution.

Security system maker Zicom Electronic Security Systems rose 1.62%
to Rs 91 after the firm said it won an order worth Rs 7.5 crore for
installing a wireless broadband outdoor surveillance system in the
northern city of Gurgaon.