The day began normally enough with the Sensex beginning the day at 10,335 points. And then B Ramalinga Raju’s disturbing disclosure over cooking the books at Satyam sent the Sensex tumbling down to close the day down 7.25 per cent or 749.05 points at 9,586.88 points.
Satyam’s shares went into a free fall, dipping 77.69 per cent to end the day at Rs 39.95 over its previous close of Rs 179.10.
News of Sundaram BNP Paribas selling its entire stake of more than five million shares of Satyam in the last week came as an added blow to the beleaguered company.
Nifty too lost 192.40 points to close the day at 2920.40 points.
“Markets have taken badly as Satyam issue is a corporate governance one. It is a fraud committed by the promoter of the company. It is an issue, which should be dealt strictly by the legal agencies,” said Sandesh Kirkere, CEO of Kotak Mutual Fund. “The markets will remain volatile for some time.”