T stocks end weak on fear of US outsourcing slowing

Despite a positive rally in the market after Reserve Bank of India moved to ease liquidity in the financial system, frontline IT stocks including Infosys, Satyam and HCL, on Monday, ended the session in red on worries over increasing possibility of Barack Obama becoming the next US president.

IT stocks witnessed a downward pressure on speculation that if Obama wins the US presidential election, the outsourcing business of the country will be curtailed and the direct impact will be on IT sector, brokers said.

Amid persisting global financial crisis, volatile rupee has also raised concern for the IT sector as most of the companies are export dependent and a major business share comes from US, said a senior official of a leading foreign broking firm.

Reports of further widening Satyam-World Bank scam also pulled down Satyam Computer shares, which fell nearly 2 per cent to close at Rs 300 Infosys was down 1.06 per cent at Rs 1367 and HCL Technologies closed marginally down at Rs 172.25. However, TCS and Wipro managed to end with a positive gap at Rs 549 and Rs 276.25, respectively.

The Sensex surged by nearly 550 points to close above 10K level after the RBI announced rate cuts last week.

The apex bank cut the cash reserve ratio to 5.5 per cent and statutory liquidity ratio by 1 per cent to 24 per cent and 50 basis points cut in repo rate to 7.5 per cent under liquidity adjustment facility.

Source: EconomicTimes