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This is an archive article published on January 11, 2009
Satyam effect: US-listed Indian stocks lose $2 bn
Indian stocks listed on the American bourses suffered a loss of close to USD 2 billion in a week.
Indian stocks listed on the American bourses suffered a loss of close to USD 2 billion in a week,following unfolding of India’s biggest accounting fraud by NYSE-listed Satyam Computer.
Despite,a halt in trading in Satyam Computer from Wednesday,the rest of the 15 Indian stocks on US bourses bore the brunt of the negative market sentiment and witnessed a fall of USD 1.94 billion in their combined market capitalisation in the week ending January 9.
Meanwhile,the Hyderabad-based company,which traded on the first two day of the week,added USD 2.66 billion on the speculations that some rival IT firm might acquire it. The combined market-cap of all firms excludes Satyam’s valuations for the two days.
The NYSE had halted trading in Satyam Computer from January 7 after the company’s founder Ramalinga Raju disclosed financial bungling at the Indian IT firm and resigned from the company. The trading was halted as the Satyam ADS had tumbled over 90 per cent in the pre-market trading on the US bourse on January 7,after the new broke.
Meanwhile,private sector lender HDFC Bank’s market valuation plunged by USD 1.20 billion and ICICI Bank’s by USD 1.04 billion,respectively.
IT major Wipro saw an erosion of USD 277 million in its valuation.
Other major losers include telecom major Tata Communication whose market capitalisation declined USD 152 million and another telecom entity Mahanagar Telephone Nigam,which tumbled by USD 135 million.
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