Equities down slightly; Reliance drags

Infosys Technologies was down 1.4 per cent while Tata Consultancy and Wipro dropped 1.1 per cent each.

According to a Reuters poll,the Indian unit is seen picking up where it left off in 2009,rising another 4 per cent on top of its 4.7 per cent increase last year,its appreciation driven mainly by inbound portfolio investment.

“Rupee appreciation is clearly hitting IT stocks. This is a big negative for the pack,” said Ambareesh Baliga,vice-president of Karvy Stock Broking.

By 09:56 a.m.,the 30-share BSE Index was trading down 0.07 per cent at 17,603.14,with 17 of its components declining.

“Valuations are looking expensive,and we have reached dangerous levels. It is liquidity more than fundamentals,that is driving the market,” said Baliga. “Investors should start exiting and book profits.”

Energy major Reliance Industries was down 0.2 per cent at Rs 1,103.

Reliance’s has recently made a new offer has pushed its valuation of Lyondell to about $13.5 billion,up from $12 billion in an initial bid made in November,the Wall Street Journal reported,citing people familiar with the matter.

Metals stocks dipped in line with a decline in base metal prices,which were hit by fear of tighter Chinese monetary policy.

Sterlite Industries dropped 1.3 per cent while Hindalco and Tata Steel declined 0.5 per cent and 1 per cent respectively.

In the broader market,gainers led losers in a ratio of 2.5:1 in a volume of 130 million shares.

The 50-share NSE index was down 0.1 per cent at 5,289.85.