The net asset values (NAVs) of IT (information technology) funds have witnessed a slide despite what is largely acknowledged as a good budget.

Open-ended, IT Schemes	NAV(Rs)	Last week	Last month	Last year	Inception
BSE - 30	-	-1.8%	-9.3%	-38.1%	-
S&P CNX Nifty	-	-1.9%	-8.7%	-32.8%	-
S&P CNX 500	-	-4.0%	-12.7%	-76.6%	-
Tata IT Sector Fund	7.7	-7.9%	-16.9%	-66.2%	10.0%
Sun F&C Emerg Tech (Gr)	5.3	-9.6%	-19.6%	0.0%	-43.8%
K P Internet Opport.(Gr)	5.6	-10.3%	-19.2%	0.0%	-41.6%
Chola Freedom Tech (Cum)	10.4	-12.5%	-21.6%	-50.5%	0.6%
Pru ICICI Tech. (Gr)	3.9	-14.3%	-25.8%	0.0%	-60.6%
Alliance New Millenn (Gr)	5.7	-14.8%	-25.1%	-68.1%	-61.7%
Birla IT Fund (Gr)	10.2	-15.7%	-26.1%	-74.4%	1.3%
UTI Sector- Software	10.2	-15.8%	-30.3%	-73.9%	-4.2%
Magnum Sector Funds-IT	9.0	-16.3%	-27.0%	-73.9%	23.7%
DSP ML Tech.com (Gr)	5.1	-17.2%	-27.2%	0.0%	-40.7%
K Tech	4.3	-17.5%	-29.0%	0.0%	-45.2%
K P Infotech (Gr)	17.4	-17.9%	-28.7%	-68.9%	66.4%
IL&FS eCOM Fund (Gr)	3.8	-17.9%	-29.4%	-73.7%	-72.3%

There were many positives for the IT sector in the Union budget 2002. Removal of 10% surcharge on custom duty, hike in foreign institutional investor (FII) investment limit to 49%, investment of ADR/GDR proceeds aboard, are some of the key issues addressed by the finance minister in the budget. These measures were supposed to have had a positive impact on the IT industry. The markets certainly greeted these measures most warmly as was apparent from the 170+ point surge on the day of the budget.

However, events have taken a most dramatic turn since. IT stocks have witnessed a free fall over the past few days and this is attributed largely to price manipulation by brokers. The Securities and Exchange Board of India (SEBI) has set up a team to investigate this issue.

So what was a dream for the markets has turned into a nightmare. The mutual fund investor must be wondering what went wrong as he finds his delight turn to distress.

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