The mayhem continues in markets worldwide and in India. While bourses in this country fell less than most others in Asia, the Sensex still ended Tuesday’s trade at a 14 month low. The index closed with a 132.27 points decline at 16857.91. And the Nifty finished 45.65 points lower at 5072.85.
IT companies, which are heavily dependent on exports were among the biggest losers. Shares of TCS plunged 4.16% on the BSE to 967.25. Infosys dropped 3.68% to 2,377.10.
Also retreating on Tuesday were other big companies tied to the global economy. Tata Steel plummeted 4.87% to 486.05. And RIL tumbled nearly 1.95% to 765.40.
The once-troubled IT firm Mahindra Satyam has reported bumper results for the first quarter. The company posted a profit after tax of Rs 225 crore, which is an increase of more than a 100%. That’s on a revenue growth of just 15% to Rs1,434 crore. Satyam chairman Vineet Nayyar said the results showed the company was now finally progressing towards growth. But stocks of Satyam fared badly, much like those of other IT companies. Its shares dipped 4.31% on the BSE to finish at Rs 71.10 .
And with so much uncertainty about economic conditions, the government is indicating it wants a steady hand at the helm the Reserve Bank. On Tuesday Prime Minister extended RBI governor D Subbarao’s term by another two years. Subbarao became RBI chief back in September of 2008, just as the global financial crisis erupted. Under his leadership, the Reserve Bank has increased interest rates 11 times since March of last year, but wholesale inflation still remains above 9%.