Satyam debacle dampens sentiment, Sensex falls 1.88 pc
Sensex fell for the second straight session by losing over 180 points on aggressive selling as investors were worried that the Satyam Computer scandal might trigger an outflow of foreign funds.business Updated: Jan 09, 2009 17:16 IST
The Bombay Stock Exchange benchmark, Sensex, on Friday fell for the second straight session by losing over 180 points on aggressive selling as investors were worried that the Satyam Computer scandal might trigger an outflow of foreign funds.
The Sensex, which had lost 749 points in the previous trading session, dropped further by 180.41 points at 9,406.47, after touching the day's low of 9,250.82 points following a steep fall in the stocks of Satyam Computer, Larsen and Toubro, Reliance Communications and BHEL. Similarly, the 50-share National Stock Exchange index Nifty plunged by 47.40 points at 2,873.00. It touched the day's low of 2,810.25 points.
The benchmark fell for a second day as Satyam Computer Services extended losses on concerns it might have insufficient funds after Ramalinga Raju, who resigned as Chairman, said on Wednesday he falsified accounts. The market was closed on Thursday due to Moharram.
Satyam dropped 41 per cent, taking its decline to 82 per cent since Wednesday. Larsen and Toubro, which owns a 3.95 per cent stake in Satyam, dropped 7.15 per cent, the most in almost three months, as the value of its investment in the software developer fell.
Trading sentiment dampened on fears that foreign investors might lose confidence in the regional equity markets here after the fourth-largest software company shocked investors by revealing the country's biggest corporate fraud scandal in memory, brokers said.