Shares plunge 32% on concerns over revival
Satyam Computer Services’ stocks plunged again on Thursday, apparently rattled by concerns that the government will not offer any cash support to help the company.india Updated: Jan 15, 2009 21:46 IST
After regaining some lost ground over the last three days as a result of the government’s intervention, Satyam Computer Services’ stocks plunged again on Thursday, apparently rattled by concerns that the government will not offer any cash support to help the company. This time by a significant 32 per cent to close at its lowest since January 5, 1993 at Rs 20.3.
“The government is not going to directly or indirectly subsidise the wrongdoing and fraud in Satyam” Minister of State for Industry Ashwani Kumar told reporters.
Even at the New York Stock Exchange during the pre-market trade, Satyam’s American Depository Receipt was down 22 per cent and stood at $0.96 from its previous close of $1.23.
“The longer it takes for the for things to settle the more restive will the employees and clients become,” said Pankaj Pandey, head of research, ICICIdirect.