Nasdaq downturn prompts heavy FII selling; Sensex dips 80 points
Mumbai: After a weeklong upswing, heavy selling by foreign and domestic institutional players forced stock prices down on Wednesday.

Nasdaq’s loss of around 97 points on Tuesday too contributed to the bearish sentiments here.
An analyst said that FIIs sold heavily on counters like Infosys Technologies, Satyam Computer, Digital Equipment and Zee Telefilms. Credit Lyonnais and Morgan Stanley pressed huge selling in these counters as they found the right opportunity on Wednesday after the local markets were rising consistently.
All frontline stocks from the IT sector lost heavily in the range of 8 per cent and more, while the sectoral BSE IT index lost 125 points (6.56 per cent) on Wednesday.
Even as the market went down, pharma and old economy stocks displayed some strength. However, as selling pressure in technology stocks remained unabated the market started losing earlier gains.
ITC announced better than expected results and the stock remained firm. Other stocks in the limelight were BSES, Grasim and Reliance.

The benchmark indices closed the session with losses in wake of heavy selling resorted to by foreign institutional investors (FIIs) in the new economy stocks. The Sensex lost 80 points while S&P CNX Nifty was down 21 points.

The market gradually lost ground after starting on a steady note at 3745.57 as compared to previous close of 3742.07 and reached intra-day high of 3759.96 before the mid-session. The market began to witness selling at the fag end of session to reach intra-day low of 3653.31 before closing at 3662.04. Nifty followed suit and closed at 1177.55. On a sliding Nasdaq, Infy stock lost $3 per American Depository Share (ADS) and accordingly the correction was seen in the Indian paper, dealers said.
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