Satyam Stock Tag Crashes 10%

The Satyam Computers counter bucked the trend on the major bourses as software stocks hogged the limelight yesterday. According to brokers, the renewed emphasis given by the government on software exports has resulted in this spurt in activity.

Satyam Computers lost nearly 10 per cent of its value as one broker, who had bought more than five per cent stock for his non-resident Indian client, was forced to sell in the market. The stock closed on the National Stock Exchange (NSE) at Rs 237.75 and on the BSE at Rs 235.70.

Both exchanges witnessed volumes to the tune of 9,70,000 shares."The purchase of more than five per cent resulted in exceeding the limit of 30 per cent imposed on FII investment in the stock. The broker took up the position thinking that some room was available.

 

However, he realised that another broker had already issued contract notes and the available gap was filled up. This forced a sell-off at the counter," commented a dealer at a leading institutional brokerage.

Almost all software stocks like NIIT (up two per cent), Pentafour Software (up 5 per cent), Wipro Infotech (up 5 per cent), Infosys Technologies (up 2.24 per cent) and Tata Infotech (up 8 per cent) were in the limelight.

Infosys Technologies was among the major gainers, and market sources said that close to two lakh shares have been traded in the past three trading sessions. The scrip touched its 52-week high at both the bourses. At the BSE, the scrip touched its 52-week high of Rs 1805 before closing lower at Rs 1740.50 on profit booking.

On the NSE, the scrip closed at Rs 1736.70 after touching its 52-week high of Rs 1792.75.

The Pentafour Software scrip also continued the bull run, and the stock closed at Rs 402.50 over its previous close of Rs 384.25. It also hit its 52-week high during intra-day trading.