CEO exit speeds up Tata Motors fall

K.S. Badri Narayanan | Updated on September 11, 2011

A rumour that Greece would default on its debt over the weekend sent the US shares into a tailspin, despite the Government's strong denial of such a thing happening. Domestic cues such as job data also aggravated the downfall. The Dow Jones Industrial Average plunged 2.2 per cent and the S&P 500 dippd by 1.7 per cent, while the tech-focussed Nasdaq lost 0.5 per cent.

Domestic markets faced profit booking towards the weekend, after beginning on a promising note. The BSE Sensex closed 0.27 per cent higher and the NSE's S&P CNX Nifty 0.39 per cent.

The resignation of Mr Carl-Peter Forster, chief executive officer of Tata Motors, owner of the Jaguar and Land Rover brands, had sent the ADR price crashing on Friday. It fell 9.23 per cent to $15.35; for the week the ADR slumped 4.24 per cent from the previous week close of $16.03.

Mr Forster resigned after less than two years at the helm citing “unavoidable personal circumstances.”

Wipro that was the biggest loser for the week. The ADR tumbled 6.4 per cent to $9.05 against the previous week close of $9.67.

The US President, Barrack Obama's $447-billion plan to stimulate job creation in the US with infrastructure spending, local government subsidies and lower payroll taxes failed to cheer IT sector.

Infosys Technologies also slumped 4.88 per cent to $47.17 ($49.59) while Patni Computer crashed 5.98 per cent to $11.94 ($12.7).

Mahindra Satyam (erstwhile Satyam Computer) closed the week 4.8 per cent higher at $2.84 ($2.71). Dr. Reddy's Lab, which settled a patent infringement suit with Pfizer related to the launch of a generic version Lipitor in the US, tumbled 4.7 per cent to $30.82 ($32.34).

Banking majors ICICI Bank and HDFC Bank were relatively stable. While the former slipped 0.8 per cent the latter 1.1 per cent. The Reserve Bank of India will meet on September 16 to decide on key rates.

Telecom majors MTNL and Tata Communications fell 4.88 per cent and 0.23 per cent respectively while Sterlite Industries declined 3.68 per cent.

Internet majors and Sify ended the week on mixed tone. While gained 0.38 per cent, the latter slipped 1.35 per cent.

Published on September 11, 2011

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