Satyam, Wipro lose over $4 bn on US bourses
IT entities Satyam Computer Services and Wipro together accounted for more than half of the $6 billion losses incurred by the Indian stocks listed on the American bourses last week.business Updated: Jan 18, 2009 11:34 IST
IT entities Satyam Computer Services and Wipro together accounted for more than half of the $6 billion losses incurred by the Indian stocks listed on the American bourses last week.
Tainted Satyam Computer, whose founder chairman B Ramalinga Raju had admitted to fudging of accounts worth thousands of crores, saw its market valuation erode by a $2.7 billion for the week ended January 16. The scrip resumed trading on the New York Stock Exchange on January 13 after it was suspended in the wake of the accounting fraud.
The market capitalisation of another IT major Wipro, which has been debarred by the World Bank from receiving any contracts till 2011, tumbled as much as $1.5 billion during the same period.
Meanwhile, the total valuation of 16 Indian stocks listed as American Depository Receipts (ADRs) on NYSE and Nasdaq, plunged six billion dollars in one week.
Trading of Satyam Computer was halted on January 7 after its ADR crashed 90 per cent following the admission by Raju.
Another major loser was ICICI Bank. The private sector lender's market capitalisation dropped one billion dollars. Similarly, valuation of HDFC declined by $883 million for the week ended January 16.
Meanwhile, private sector lender market ICICI Bank's valuation plunged by $1.03 billion and HDFC Bank's by $883 million, respectively.
However, IT bellwether Infosys shrugged off the gloom and added $705 million to its market value. The rise was primarily due to better than expected third quarter results, the company's net profit soared 33.3 per cent to at Rs 1,641 crore for the December quarter.