Business Daily from THE HINDU group of publications
Thursday, Jan 08, 2009
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Business Daily from THE HINDU group of publications Thursday, Jan 08, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Stock Markets Corporate - Corporate Governance Info-Tech - Stocks
Our Bureau Mumbai, Jan. 7 In a unique case of upheavals at a single company pulling down the Indian stock market, Wednesday’s disclosures by the founder-Chairman of Satyam Computer Services rocked the equities market, sending the Sensex crashing 7 per cent. The benchmark index opening 89 points higher from Tuesday’s close registered a massive fall of 825 points in the mid-session trade after the company Chairman Mr B. Ramalinga Raju’s letter, admitting to the company’s hugely inflated balance sheet, was put up on the stock exchanges. As the Satyam scrip fell 80 per cent intra-day to the Rs 30-level from the day’s high of Rs 188.70, the ripple effect was felt across the entire market. “Certainly there has never been in the past an incidence when a huge fall like the one in Satyam today had brought down the whole market on a such a large scale,” said Ms Anita Gandhi, head institutional business at Arihant Capital Markets. The Sensex closed 749 points lower at 9,586.88, while the Nifty closed 192 point down at 2920. Investors started exiting even other highly liquid counters, and later it became a field day for day traders and arbitrageurs. As a result, trading volumes on the stock exchanges were sharply higher on Wednesday, NSE’s combined cash and futures & options turnover was above Rs 75,064 crore, against Rs 52,019 crore on Tuesday; on the BSE, turnover was at Rs 5,832 crore against Rs 4,701 crore. Most of the liquid counters witnessed higher volumes. Satyam Computers itself topped the turnover charts on both BSE and NSE, with 47.3 crore shares traded on both the exchanges, with turnover at Rs 3,177 crore. All sectoral indices on the BSE closed in the red, with the maximum losses seen in BSE Realty (16.95 per cent), Oil& Gas (9.35), and IT (9.32 per cent). Market watchers expressed their shock at the day’s development. “I am quite aghast at what has happened, whom do you trust in the world, one has come to doubt everything,” said Ms Deena Mehta, Managing Director, Asit C Mehta Investment Intermediates Ltd. Satyam promoters’ stake falls below Aberdeen Group A Satyam hole in market cap For now, bull and bear will be driven by domestic players More Stories on : Stock Markets | Corporate Governance | Stocks | Satyam Computer Services Ltd
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