Q1 Fears Rattle Satyam Computer

Satyam Computer saw a decline in its stock price ahead of its results following a fall in global indices. The stock dropped 4.61 per cent to end the day at Rs 220.45, after hitting an intra-day high of Rs 229. A total of 40.33 lakh shares changed hands on the Bombay Stock Exchange today.

On the National Stock Exchange, the scrip which fell 4.63 percent to Rs 220.60 and saw volumes of 114.07 lakh shares.

On Thursday, the company is scheduled to announce its results for the first quarter (Q1). Predictions by software analysts indicate a 5.5-9.5 per cent fall in net profit to Rs 110-115 crore on an 11.2-14.6 per cent rise in top line for the software major.

As regards to today's fall in the stock price, analysts attributed it to the massive fall in US indices that has set off selling in domestic tech stocks. They said till the US market revives, the domestic market will not pick up.

However, analysts are expecting some positive announcements from Satyam Computer. They expect that the company may announce a fresh batch of new orders in business process outsourcing (BPO) and may even come up with a statement on the possible sale of stake in Sify.

As per market talk, Satyam Computer is likely to receive BPO business from electronic data systems.