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MUMBAI, April 17

THE technology sector disappointed the markets once again today with Wipro announcing `below expectations' results leading to a fall of 47.82 points in the BSE Sensex, which ended below the 3000 level at 2984.50, and a decline of a 17.95 points in the Nifty, which closed at 940.70.

Software stocks came under heavy selling pressure with Satyam, Wipro and Infosys leading the way. Wipro lost 8.25 per cent on the BSE at Rs 884.40 while Infosys closed the day at Rs 2905.75, down 3.32 per cent and Satyam fell 8.36 per cent to close at Rs 144.20.

"Going by recent developments, seems like any software company that announces its results will be hammered at the bourses," retorted a dealer with a local brokerage.

"In the case of Wipro, especially, there is a bigger risk considering the company does not seem to be growing."

Overall, the drain of money from the technology counters did not seem to benefit the traditional defensive sectors i.e. old-economy counters which also lost ground in today's trading. "People are just sitting put on the money. One would have expected monies to flow into sectors such as banks or FMCG but that's not happening, especially since the latter is not registering much growth. On the whole, one cannot form a definitive view on the market given the uncertainty," said an equity analyst with a foreign broking house.

Among the old-economy stocks that suffered at the bourses today were index heavyweights such as HLL, down 3.32 per cent at Rs 142.85; Reliance, down 1.94 per cent at Rs 278.10 and State Bank of India, down 1.02 per cent at Rs 287.35 per cent.

Gainers for the day included Hindalco up 1.59 per cent, Colgate up 1.59 per cent, Grasim Industries up 0.76 per cent and Dr Reddy's at 0.16 per cent.

The market is expected to move in a narrow range going forward with investors watching closely the results of Satyam Computers which will be announced next week. The expiry of the derivatives contract on next Thursday is also likely to affect the market sentiment, brokers said.

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