The total valuation of Indian shares trading on American bourses plunged seven billion dollars in January,with scam-hit Satyam Computer accounting for nearly one-third of the losses,as gloomy economic data greeted global markets during the month.
Reeling under a massive accounting fraud,Satyam Computer shed a stunning 2.3 billion dollars last month,whereas the 16 Indian entities listed on New York Stock Exchange and Nasdaq together witnessed a value erosion of seven billion dollars.
Among the 16 companies trading as American Depository Receipts (ADRs),private sector lender HDFC Bank saw a significant fall in market value,shedding two billion dollars during the same period.
On January 7,Satyam founder B Ramalinga Raju confessed that he had fudged the company’s accounts to the tune of Rs 7,800 crore.
Following the development,trading of the scrip was suspended on NYSE on the same day after it tumbled over 90 per cent. Later,trading of the firm’s shares began on January 13.
ICICI Bank and IT entity Wipro too saw their respective market capitalisations plummet more than one billion dollars.
While Wipro’s valuation eroded by 1.8 billion dollars,that of ICICI Bank dropped by 1.5 billion dollars.
Last month,the World Bank revealed that it has banned Wipro from doing any business with the global lending agency till 2011.
However,bucking the downward trend,IT bellwether Infosys added 1.2 billion dollars to its market valuation.
A raft of disappointing economic and corporate news had pulled down the bourses worldwide in January. With economic turmoil worsening in many of the developed nations,many entities globally announced job cuts and the total layoffs for last month is estimated to be over 2,77,000.