Satyam effect: Sensex falls for second day

The Bombay Stock Exchange’s Sensex fell for a second day, as Satyam Computer Services extended declines on concern that it may have insufficient funds. Satyam dropped 41 per cent, taking its losses to 87 per cent since Chairman B Ramalinga Raju quit on Wednesday saying he inflated earnings and assets by $1 billion.

Larsen & Toubro, which owns a 3.95 per cent stake in Satyam, dropped 7 per cent, the most in almost three months. The Sensex fell 1.9 per cent or 180.41 points to 9,406.47. The S&P CNX Nifty Index on the NSE slid 1.6 per cent to 2,873.