BackMidsession: Sensex tumbles over 300 pts after Satyam debacle
Midsession: Sensex tumbles over 300 pts after Satyam debacle
PremiumMumbai: The Bombay Stock Exchange benchmark Sensex tumbled over 336 points at midsession on Friday on aggressive selling by funds following the Satyam Computer crisis.
The Sensex, which had lost substantial ground in the previous trading session, dropped further by 336.06 points at 9,250.82 at 1:30pm hrs following a steep fall in stocks of Satyam Computer, Larsen and Toubro and Reliance Communications and BHEL.
The benchmark fell for a second day, as Satyam Computer Services extended losses on concerns it might have insufficient funds after Ramalinga Raju, who resigned as Chairman, said on Wednesday he falsified accounts. The market was closed on Thursday due to Moharram.
Satyam dropped 46%, taking its decline to 88% since Wednesday. Larsen & Toubro Ltd, which owns a 3.95% stake in Satyam, dropped 7.43%, the most in almost three months, as the value of its investment in the software developer fell.
Similarly, the 50-share National Stock Exchange index Nifty plunged by 110.15 points at 2,810 at the same time.
Selling pressure surfaced after Sensex participants like DLF Ltd, the countrys biggest developer, which dropped 14%, extending a 16% decline since 7 January. Sterlite Industries, the nations largest copper producer, fell 5.8%, after falling 4.3% on 7 January.
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