BSE Sensex seen lower, Satyam to climb
MUMBAI (Reuters) - The BSE Sensex is expected to start lower on Monday, tracking weaker regional markets, but Satyam Computer Services Ltd could bounce after the government appointed a three-man board to restore confidence in the scandal-hit outsourcer.
“Whatever shares had to be sold have already been sold and now with the old board out and a new board in, foreign investors will feel encouraged to invest in the stock and in the Indian market,” said Arun Kejriwal, director of Kris Brokerage.
An accounting fraud, revealed by chairman and founder Ramalinga Raju last Wednesday in a stunning resignation letter, has battered Satyam shares, with its market value plunging to $330 million at Friday’s close, against more than $7 billion just six months ago.
Bigger rivals Infosys Technologies, which reports December quarter result on Tuesday, Tata Consultancy Services and Wipro are expected to be in focus on a
perception they could benefit from problems in Satyam.
However, the main BSE index, which fell 5.5 percent last week to 9,406.47, could ease on concerns the Satyam scandal could trigger tighter regulations. Foreign funds sold $262 million worth of Indian equities on Wednesday following Satyam’s revelations.
Read about satyam scandal at www.ghotala.in