Sensex crashes by 99.26 pts to end at 15,000 mark

Mumbai, July 11: The Sensex today crashed by 99.26 points on theBombay Stock Exchange (BSE) to settle below the 15,000 mark at14,910.62 on account of selling pressure in information technology,auto and banking scrips and negative cues from southward-bound globalindices.

''The market stayed weak throughout the day's trading, except forthe odd surge in early afternoon trade, as selling pressure continuedfor index pivotals. All the global markets were in the red, with theodd exception of Shanghai Composite,'' market analysts said.

IT stocks played the spoilsport after IT bellwether InfosysTechnologies today cut its financial year (FY) 2008 earning per share(EPS) and revenue guidance in rupee terms while announcing firstquaterly (Q1) June 2007 results. Shares from auto and banking pack alsosaw some profit booking. However cement, metal and oil explorationstocks outperformed, the analysts said.

After opening weak at 14,948.15 from it's previous close of15,009.88, Sensex touched an intra-day high of 15,015.35 and a low of14,829.55.

Among the broader markets, the National Stock Exchange (NSE) NiftyIndex also tanked by almost 19 points to settle in the red at 4,387.15from it's previous close of 4,406.05, after opening weaker at 4,403.80and moving between 4,411.45 and 4,344.70 during the day's session.

BSE data revealed that the Sensex swung 186 points in a day ofvolatile trade. The total turnover amounted to Rs 5,473 crore. Amongthe 30-scrip Sensex pack, 18 declined while the rest advanced.

Analysts pointed out that IT pivotals saw intense selling pressureright from the opening bell. Four of the top five losers from theSensex were IT stocks.

''IT bellwether Infosys Technologies slumped 4.65 per cent to Rs1,926, on high volumes of 15.32 lakh shares. It was the top tradedcounter on the BSE with turnover of Rs 298.55 crore. It was the toploser from the Sensex pack,'' market pundits noted.

The company today revised upwards its EPS guidance for FY 2008(year ending 31 March 2008) in dollar terms to a growth of 28.4 percent to 29.7 per cent compared to the earlier guidance of 25.7 per centto 27.7 per cent growth. It has also slightly raised the revenueguidance in dollar terms to 29 per cent to 31 per cent, from theearlier guidance of a growth of between 28 per cent to 30 per cent.

EPS guidance in rupee terms has been cut to reflect a growth of15.6 per cent to 16.8 per cent compared to the earlier guidance of 20per cent to 22 per cent growth. It has also reduced the revenueguidance in rupee terms to 16.9 per cent to 18.3 per cent, from theearlier guidance of a growth of 22.6 per cent to 24.6 per cent.

Infosys' consolidated net profit as per Indian GAAP was down 5.6per cent to Rs 1079 crore in Q1 June 2007, from Rs 1,144 crore in Q4March 2007. Revenue was almost unchanged at Rs 3,773 crore in Q1 June2007 compared to Rs 3,772 crore in Q4 March 2007.

The other main laggards were Satyam Computers, TCS, Wipro, TataMotors, Mahindra&Mahindra, Maruti Udyog and ICICI Bank The majorwinners were Tata Steel, ACC, UltraTech Cement Company, BirlaCorporation, Grasim, Reliance Energy (REL), Dolphin Offshore, AbanOffshore, Selan Exploration and SEAMEC.

Foreign institutional investors (FIIs) bought shares worth nearlyRs 583.02 crore, while domestic institutional investors (DIIs) were netsellers of shares worth approximately Rs 206.70 crore during the lasttrading session.

All Asian markets fell today, reacting to the sharp overnight fall onthe Wall Street. The Japanese market fell, led by exporters such asToyota Motor Corp and Sony Corp, as the US dollar weakened against theyen. Japan's Nikkei plunged 1.11 per cent to 18,049.51.

Hong Kong's Hang Seng was down 0.64 per cent at 22,739.03,Taiwan's Taiwan Weighted slipped 1 per cent at 9,290.95 and Singapore'sStraits Times tanked 0.61 per cent at 3,598.26.

However China's Shanghai Composite recovered after an initialfall. It was 0.33 per cent to 3,865.72l. Meanwhile, all the Europeanindices were trading with losses.

US stocks fell sharply yesterday, after investor enthusiasm washit right at the outset of the earnings season after both Home DepotInc and Sears Holdings lowered their forecasts.

The Dow Jones declined 148.27, or 1.09 per cent, to 13,501.70.

Broader stock indicators also dipped. The Standard&Poor's500 index fell 21.73, or 1.42 per cent, to 1,510.12, while the NasdaqComposite index lost 30.86, or 1.16 per cent, to 2,639.16.

UNI