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| Satyam bids adieu to F&O segment with 10% loss |
| BS Reportr / Mumbai Jan 30, 2009, 00:47 IST |
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On its last day in the futures & options (F&O) segment, Satyam on Thursday witnessed high volatility as traders rushed to square up their positions. Before the share closed the day with a decline of 10.16 per cent at Rs 49.95, it touched an intraday low of Rs 39 and high of Rs 60. The stock opened the day at Rs 57 on the National Stock Exchange (NSE).
No new contract on the counter will be issued from February, while all the existing ones would expire in April. Nearly 4 per cent of the company’s equity was traded in a huge block.
Over 300 million Satyam shares were traded on Thursday on both NSE and the Bombay Stock Exchange (BSE). According to brokers, the share had turned into a punters’ delight ever since the company’s balance-sheet fraud came into light 20 days ago. It had touched a 52-week low of Rs 6.30 on NSE on January 9 and since then its price has risen 10-fold.
FIIs such as Morgan Stanley, Swiss Finance Corporation and JP Morgan also sold through the bulk deal route during this period. On Wednesday, Fidelity bought 17 million shares of Satyam through bulk deals on the NSE. That day, the stock surged to Rs 55.45, registering a rise of 17 per cent up from its previous close. Just the day before on Tuesday, the stock had witnessed a 21 per cent rise from Monday’s close as bears covered their short positions on reports that Larsen & Toubro has further increased its stake in the company.
However, market analysts now expect the volume on the counter to dry down. On BSE, the stock would form part of ‘Z’ group securities, where delivery of shares is compulsory, and would attract 5 per cent circuit filter.
The possibility that L&T might raise its stake in the company to 15 per cent, thereby triggering an open offer, had spurred interest in the stock. “However, things are quite vague as of now and it is the speculation that has lifted the share price,” said an analyst.
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