It was nothing less than an disasters for Indian stock markets and Indian financial system as a whole as in a dramatic development, Satyams chairman Mr. Ramalinga Raju resigned from the board of Satyam and admitted cooking up figures in Satyam balance sheet. In the starting market opened on higher side, The 30 share BSE Sensex opened with a gain of 89.03 points, at 10,424.96 riding on the back of yesterday's smart recovery and an overnight gains in the US marketbut can't able to sustain this rally tumbles more than 6% as when the news came of Satyam Comp inflataion of Rs 5040cr and fraud of more than 7000 crores.

The Sensex ended the day with a loss of 749.05 points, or 7.25% at 9,586.88 after touching a high of 10,469.72 and a low of 9,510.15. The broad-based NSE Nifty declined 192.40 points, or 6.18% at 2,920.40 after hitting a high of 3,147.20 and a low of 2,888.20. BSE Midcap and Smallcap index plunged 7.17% and 6.29% respectively.

Termed as the worst ever fraud in corporate Indias history, Satyam revealed in a announcement that the balance sheet has inflated cash & bank balance of Rs. 5040 cr. and accrued interest of Rs. 376 cr. shown in books is non-existent. According to press release, Rs. 1230 cr. was arranged to Satyam, which is not reflected in books. The stock crashed after this announcement and closed with 77.7% fall.

Sectoral :

A bad day for market just because of Satyam ruined thee mood which was gained by positive close in US markets.  There was a RED carpet closing in all BSE sectoral indices. The most affected sector was Realty which slumpped more than 16.95% or 401 points, to close at 1,965.20. The list followed by BSE IT ( down 218.66 points or 9.32% ), BSE Oil & Gas ( down 613.42 points or 9.35% at 5,944.41 ), BSE Bankex ( down 481.05 points or 8.06% at 5,489.24 ) and BSE Teck (down 7.85%).  On stock specific Satyam was pulling the market most and tanked 77.16% at Rs40.90 JP Associates crashed 29.70% at Rs70.90, Reliance Communications shed 17.42% at Rs205.50, DLF declined 17.08% at Rs232, Reliance Infrastructure lost 13.25% at Rs561.20, Reliance Industries slipped 12.29% at Rs1,199.90 and ICICI Bank dropped 11.31% at Rs464. Among other major losers Larsen & Toubro dipped 9.49% at Rs768, Tata Motors slipped by 7.49% at Rs171.80 and Ranbaxy Laboratories was down 7.46% at Rs234.55. Mahindra & Mahindra, HDFC Bank, ACC, Hindalco Industries, State Bank of India, Tata Steel, ONGC and ITC were down 3.85% each.  Select counters, however, bucked the downtrend. Hindustan Unilever advanced 1.44% at Rs250.20 while Infosys, Maruti Suzuki India and Wipro were up with steady gains.

If you enjoyed this post, make sure you subscribe to my regular Email Updates!

If you enjoyed this post, make sure you subscribe to my regular Email Updates!