Satyam spins high piggybacking ADR

DALAL STREET SPIKES

Software major Satyam Computers spurted 2.34 per cent on surge in its ADR on Thursday. The stock on the BSE hit an intra-day high of Rs 372.30 before closing at Rs 369.25, up 2.34 per cent from its previous close.

Satyam ADR was up 7 per cent to $23.46 on Thursday. The stock has been on an upward trend over the past few days on strong buying support from institutional investors.

According to market sources, rumours of company announcing a bonus issue soon is attracting fresh buying at this counter. Over the last few months, the stock has bounced back from a low of Rs 286 on June 14 to Friday's close of Rs 369.25 on the back of strong first quarter numbers ended June 30, an upward revision in FY 2005 earnings and revenue guidance by the company and a rerating of the entire IT sector.

The volumes too are on a high and accounted for more than 20.5 lakh shares on the BSE on Friday. The Satyam Computers scrip has a face value of Rs 2.