Money on the markets

A maturing market amid the mayhem

Sensex up 1.5 pct, Tech Mahindra jumps after winning Satyam bid

April 13, 2009

SATYAM/A rally in global markets today saw the BSE Sensex swing from being briefly negative in early deals to over 11,000 in the last hour of trade, before closing 1.5 percent up at 10,967.

The big news of the day was Tech Mahindra winning the bid for fraud-hit Satyam Computer.

Tech Mahindra will pay $351 million for 31 percent preferential allotment of new shares in the firm.

Shares in Satyam closed 3.6 percent higher at 48.85 rupees. It was the top traded stock on BSE with volumes of over 56 million shares.

Tech Mahindra jumped 12.3 percent, whereas Larsen & Toubro, which has an about 12 pct stake in Satyam, closed 0.5 percent lower.

The other top Sensex stocks included Tata Motors (up 12 percent) and Tata Steel (8.3 percent).

The BSE Metal Index was the best performer amongst sectors, ending 5.5 pct up followed by the Banking index which ended 5 percent higher.

Investor sentiment seems to be improving by the day. Do you think the Satyam development will help the benchmark scale new heights in the days to come?

Comments

Sensex gained 163 points(1.51%) to touch 10,967.Sensex has gained 2,807 points (34.39%) since 9 March rally.The star performers over wave- period have been realty sector(63%),metals(61.61%),bankex(45.91%  ),oil & gas(43.50%) and power(27.49%).All such sectors would generally rebound in a scenario of an economic revival.

However,fear remains as stocks have rebounded quite rapidly.

Satyam sale went off without alarms.It appears that Satyam fraud is out of our system.Any adverse happening hereafter in this stock is unlikely to create an impact on sensex.

So tomorrow we arrive at first test of earnings season as Infosys is announcing 4Q results.Their guidance shall set the trend in weeks ahead.

Posted by A.Kapoor | Report as abusive
 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •