Bangalore: Wipro Chairman Azim Premji on April 17 described last week's "bloodbath" in the bourses triggered by its rival Infosys' low revenue guidance as "over reaction" and said there was a "correction" going in the stock market.

"My assessment is that people have built models based on assumptions and any model which does not meet the assumptions, there is a over reaction," Premji told reporters in Bangalore.

He was reacting to the run on technology stocks since April 10, when the guidance for 2003-2004 from IT bellwether Infosys Technologies sent the markets into a tailspin.

Led by Infosys, tech stocks fell like nine pins, plunging the BSE (Bombay Stock Exchange) SENSEX to a five-month low of below the 3000 mark.

Wipro also received a hard knock then but the market, expecting a bright outlook by the third largest IT major, stabilised on April 16.

But Wipro stocks dropped by nearly 11 per cent today when the BSE opened after it announced drop in profits in 2002-03.

Premji said Infosys also faced the market run based on assumptions, but Infosys stock was recovering.

"You are seeing that the Infosys stock... they are recovering. What you see is a correction in the stock market for software stocks," Premji, who holds 84 per cent stake in New York stock exchange listed Wipro said.

PTI