Some of the prominent scrips, which touched their yearly low on February 22 included NIIT, Aptech, Global Telesystems, Pentamedia Graphics, Rolta India, Pentafour, Sonata Software and Kale Consultants. In addition, Sensex heavyweights like Infosys Technologies, Satyam Computer, and HCL Technologies figure amongst the top losers since January 22.

Fresh worries about a slowdown in the US economy and earnings of global technology giants like Microsoft, Cisco and Nortel has led to a Nasdaq crash over the past few days. Since Indian technology companies rely heavily on the US markets, investors expect the slowdown to hit their toplines. This has resulted in revaluation of new economy stocks.

Asked whether the IT stocks were undervalued at current levels, a Delhi-based broker said, "I do not think that IT stocks have become undervalued, in fact the recent correction has brought them to appropriate levels." Out of the 13 technology scrips listed in A group, four were quoting at their 52-week low, as on February 22. As many as 10 of these forward scrips have declined 8-38 per cent over the last 30 days, while 11 of them were quoting lower than their week-ago prices. Aptech was the biggest loser in the group. The scrip has lost 38.43 per cent since January 22 to close at its 52-week low of Rs 262.8 as on February 22. Global Telesystems was also quoting at its 52-week low of Rs 518.5, losing 31 per cent over the period. NIIT also lost Rs 463 or 27 per cent to close at Rs 1261.10 as against Rs 1723.85 as on January 22.

However, Tata Elxsi, HCL Infosys and Digital Equipment provided some respite. Tata Elxsi stock has been gaining due to 830 per cent jump in net profit during the third quarter ended December 2000 and expectation of increase in Tata Sons' holding. HCL Infosys has gained on expectation of increase in demand for personal computers in India, while consistent performance of Digital Equipment has attracted investor interest in this scrip. In the B-group, 31 per cent, or 59 out of the 192 infotech companies were quoting at their 52-week low as on February 22. Aftek Infosys was the biggest loser with prices dropping 39.37 per cent, from Rs 797 on January 22 to Rs 483.9 on February 22. Sonata Software also lost 33.64 per cent to touch 52-week low of Rs 28.9 on the day.

New economy ignored
At a time when the government is threatening to tax e-commerce, ironically, the Economic Survey has no mention at all of the new economy. Wonders a doyen of the new economy: ``While the Survey covers the period 2000-2001, it seems to have ignored all the excitement around the new economy. It's as if the Y2K boom, the bull run of new economy stocks and the emergence of hundreds of dotcom companies never happened.''

Defending the complete black-out on the new economy, a North Block official said that while the government recognised the emerging sectors, it was a sheer paucity of data on the new economy which resulted in it being overlooked in this year's survey. In fact, just about the only figures the government has access to seem to come from Nasscom, which raises a bigger issue: unless urgent steps are taken to collate data, the new economy might not make it to next year's Survey either.