Infotech stocks rise as market drops
Mumbai: Investors are clearly distinguishing between information technology and telecom stocks and others. On 2 March 2000 the shares of infotech and telecom companies soared while those of economy and pharmaceutical companies took a beating on institutional selling.

The withdrawal of concessions on export profits by the Union Budget 2000-01 is seen as detrimental to the health of pharma companies with large exports. The increase in excise duty on tractors is seen as affecting sales prospects.

With bulls liquidating their positions in many stocks, including pivotals, the Bombay Stock Exchange’s 30-share Sensex closed at the day's lowest level of 5528, which was 114 points, or 2.01 per cent, below the previous closing. On the National Stock Exchange, the S&P CNX Nifty dropped 16.15 points (0.94 per cent) to 1696.55.

Information technology stocks like Infosys Technologies, Satyam Computers, SSI, Global Tele-Systems, DSQ Software, Silverline Industries, HCL Technologies, Polaris Software Lab, and Hughes Software touched their upper circuits. On the other hand, pharmaceutical stocks such as Rhone Poulenc, Ranbaxy, Novartis, Cipla, Aurobindo, Lupin Laboratories, Dr Reddy's Laboratories, and Cheminor Drugs dropped the maximum permissible limit of 8 per cent.

Aggregate volumes on both major exchanges were subdued -- Rs 3,513.20 crore on the BSE and Rs 3,766.36 crore on the NSE.
Declines outnumbered advances. On the BSE, of the 139 forward group stocks traded, 103 declined and only 35 advanced. In the BSE’s B1 group there were 583 declines against 312 advances, and in the B2 group there were 668 declines against 621 advances. On the NSE, in the NSE-50 group there were 39 declines against 10 gains, and in the NSE-Midcap grop there were 33 declines against 15 gains.

On Wednesday, 1 March, foreign institutional investors bought an aggregate Rs 140 crore in stocks, much of it in technology stocks.
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Ban on securities futures lifted
New Delhi: The government has repealed a three-decade-old ban on forward trading in securities with effect from 1 March 2000. This paves the way for derivatives trading in equities, for which the National Stock Exchange has been preparing for some time. The NSE is expected to launch derivatives trading within a month.
The government said it has also issued a notification demarcating the areas of responsibility between the Reserve Bank of India and the Securities and Exchange Board of India. The government had earlier allowed derivatives trading under the Securities Laws (Amendment) Act, 1999.
According to the statement, "government securities, gold-related securities, money market securities and securities derived from these securities and ready forward contracts in debt securities will be regulated by RBI." However, it adds: "Such contracts, if executed on stock exchanges, will however be regulated by Sebi in a manner that is consistent with the guidelines issued by RBI."
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Another Sebi hearing on ABS Bayer
Mumbai: The Securities and Exchange Board of India has called Bayer ABS India's managing director Rakesh Agarwal for a second hearing on the insider trading case. The earlier hearing was completed five months ago. It is reported that Mr Agarwal asked for the hearing on the ground that he has fresh evidence in his support.

Market observers have been expecting the Sebi verdict on this issue for some time.
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J & K Bank floating AMC
Mumbai: The Jammu & Kashmir Bank plans to create a wholly-owned asset management company. The bank will raise Rs 75 to 100 crore by March end for this purpose from the debt mart.
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