Friday, January 09, 2009

Sensex down another 180 points as Satyam tumbles

Mumbai (PTI): The Bombay Stock Exchange 30-share Sensex on Friday ended 180 points lower amid high volatility as easing inflationary pressure helped markets recover part of the early losses while scandal-hit Satyam plunged for the second day in succession.

India's fourth-largest software exporter Satyam hit its all-time low of Rs 11.50 per share on the BSE, a fall of 94 per cent from its closing level of January 6, after the company confessed to its manipulating accounts.

Satyam shares also hit their record low of Rs 6.30 per share from Tuesday's close of Rs 178.95 on the NSE.

A strong recovery on selective buying support alternated with sustained selling pressure in shares.

The BSE bellwether settled the day at 9,406.47, netting a fall of 180.41 points or 1.88 per cent from its last close.

It is the last day for Satyam in the Sensex family as it would be replaced by Sun Pharma with effect from January 12. It will also be replaced by Reliance Capital in the Nifty.

Satyam Computer is also being removed from other indices such as the BSE IT, BSE-100, BSE-200, BSE-500 and BSE Teck. The broader 50-share Nifty of the National Stock Exchange tumbled by 47.40 points or 1.62 per cent to close at 2,873.00 from its previous close.

Brokers said the market recovered smartly from the day's low of 9,250.82 as inflation fell below 6 per cent for the first time in 10 months, prompting a surge in bank stocks.

They said weak global cues as well as fears of capital outflow and a widespread impact of the worst scandal in corporate history, however, kept the markets under pressure.