Panic reaction leads to Sensex crash
Mumbai: It was panic at the share bazaar. While retail investors and institutions went on a selling spree, foreign funds just stopped buying. The benchmark Sensex of the Bombay Stock Exchange crashed by as much as 222 points. The market was reacting to rumours of income tax raids on stockbrokers and to the fear of impending rigid capital adequacy norms for brokers. At one point, the Sensex was down 300 points. It, however, ended the day at 5,296. The S&P CNX Nifty of the National Stock Exchange also lost 60.45 points to close at 1572.50. Income tax department later clarified that there were only some surveys on some brokers. BSEs decisions on additional daily margins of five percent on daily outstanding positions as well as the reduction in exposure of members also dampened the sentiments. 

The stocks that were largely affected were Infosys Technologies (down Rs 1,100), Satyam Computers, Polaris Software and, Sonata Software. Zee Telefilms, spurred by the AOL-Time Warner deal in the US, ruled firm. While the bears had a stranglehold on the market, there was no significant impact on volumes. BSE had recorded a turnover of Rs 4,896.89 crore and NSE Rs 5,388.75 crore.
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HCL Tech at Rs 1,600 on day 1
Mumbai: HCL Technologies created a record on the Bombay Stock Exchange, when its Rs four paid-up share closed at Rs 1,600 on the very first day of trading and became one among the top 10 stocks on the bourse in terms of market capitalisation. It clocked a market cap of Rs 22,188 crore, staying put at the No 8 position in market cap ranking. The appreciation in the share price (Rs 580 on offering) has been nearly 175 per cent. The stock also saw volumes of 7.85 lakh shares on the first day. The performance, market watchers said, is all the more important as the market itself was down and software stocks had taken a beating due to bull unloading.
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Technology fund from Prudential-ICICI
Chennai: Prudential-ICICI has launched a technology fund, which opened for subscription on 7 January. The mutual fund arm of ICICI plans to have a corpus of Rs 100 crore for the fund. The open-ended fund will invest in equity and equity-related securities of  technology-intensive companies, mainly information technology, communications and media.  The minimum application amount is Rs 5,000 and the fund will remain open till 28 January.
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Polaris plans stock split
Chennai: Polaris Software has announced that it will go for a stock split in the ratio of 2:1. The board of the company has recommended the change in face value of its shares to Rs five. The company is also applying to the Securities and Exchange Board of India for compulsory demat of the shares.
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Elder Pharma to come out with IPO
Mumbai: Elder Pharmaceuticals is coming out with Rs 50-crore initial public offering at Rs 100 to Rs 120 a share. The company has engaged SBI Caps and Kotak Mahindra Capital as lead managers. The funds from the IPO will be used for the companys modernisation and upgradation plans, besides increasing its bulk drug production. Elder has a turnover of Rs 180 crore and has six plants.
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Binary Semantics plans IPO
New Delhi: Software products company Binary Semantics, is planning an initial public offering worth Rs 20 crore in February-March 2000 to fund new infrastructure and investments in developing its European market and for working capital requirements. The pricing and the size of the issue will be decided in a fortnights time. The company at present has an equity capital of Rs four crore. Akhil Choudhary, chairman and managing director, and other promoters hold 80 per cent of the equity and Megasys Consulting of the US and some employees hold the balance.
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BPL, Videocon, Sterlite fail to respond to Sebi
Mumbai: BPL, Videocon and Sterlite Industries have not met with the deadline to answer the show cause notices issued by the Securities and Exchange Board of India in the 1998 payment crisis case. The companies are charged with manipulating the prices of their stocks with the assistance of scamster Harshad Mehta.

The three-week deadline to answer the notice had expired on 11 January. 
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