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| Satyam tremors rock markets | |
| B S Reporter / Mumbai January 8, 2009, 0:52 IST | |
Sensex falls the most in two months.
Stocks fell the most in more than two months after Satyam Computer Services said profits had been inflated for years.
Satyam plunged the most since listing in 1992. Reliance Industries (RIL) slumped 12 per cent after the disclosure by Satyam Chairman Ramalinga Raju.
“It’s a shocker,” said Jayesh Shroff, who helps manage about $4.7 billion at SBI Asset Management in Mumbai. “People will no longer be willing to take income statements at face value. This has also raised questions about cash holdings of other companies.”
The Bombay Stock Exchange’s Sensitive Index, or Sensex, tumbled 749.05, or 7.3 per cent, to 9,586.88, the most since October 24. Five stocks fell for each that rose on the benchmark index. The S&P CNX Nifty Index on the National Stock Exchange slid 192.40, or 6.2 per cent, to 2,920.40. The BSE 200 Index slumped 7.1 per cent to 1,148.68. Nifty futures for January delivery dropped 6.5 per cent to 2911.25.
GRIM OUTLOOK
Top 10 falls in the last decade |
| |
Sensex |
% Chg * |
| 17-May-04 |
4505.16 |
-11.14 |
| 24-Oct-08 |
8701.07 |
-10.96 |
| 21-Jan-08 |
17605.35 |
-7.41 |
| 7-Jan-09 |
9586.88 |
-7.25 |
| 4-Apr-00 |
4691.46 |
-7.15 |
| 10-Oct-08 |
10527.85 |
-7.07 |
| 17-Apr-99 |
3326.98 |
-6.88 |
| 18-May-06 |
11391.43 |
-6.76 |
| 11-Nov-08 |
9839.69 |
-6.61 |
| 24-Jul-00 |
4188.34 |
-6.17 |
| *Over previous close |
Satyam plunged 78 per cent to Rs 40.25. RIL fell 12 per cent to Rs 1,200.75, the most since November 5. ICICI Bank, the country’s second-largest lender, fell 11 per cent to Rs 467.85, the most since October 24.
Stocks that recorded the biggest declines on the Sensex include Jaiprakash Associates, India’s No. 1 builder of dams, which dropped 29 per cent to Rs 71.50, the most since June 2004. Reliance Communications, India’s second-largest mobile- phone company, fell 17 per cent to Rs 206.50, its steepest decline since October 10. DLF, the top developer, declined 16 per cent to Rs 233.85, the most since October 24.
Amongst Satyam’s peers, bellwether Infosys Technologies was trading up 1.1 percent at 1,180/95 rupees, while Tata Consultancy Services and Wipro were down 3.3 per cent and 1.4 per cent respectively.
In the broader market, losers outpaced gainers in a ratio of nearly 6:1 on heavy volume of 385 million shares.
Asian indices gave a mixed performance today while European markets resumed lower.
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