Jan. 9: The Satyam stock was hammered down to Rs 6.30 on the National Stock Exchange — its lowest level till date — but clawed back on another grim day to close at Rs 23.75, a fall of almost 41 per cent over Thursdays level.
Investors continued to be spooked by the horrendous developments in the past week that began with Ramalinga Rajus confession of cooking the companys books for years.
On the Bombay Stock Exchange, the stock tumbled to a 11-year low of Rs 11.50 in intra-day trading.
The Satyam stock has crashed more than 85 per cent since the start of this week when it had ended at Rs 166.90 amid speculation that the company was in talks to merge with an IT services company or rustle up a group of strategic investors. It was after Ramalinga Rajus shocking admission that the share went into a free fall, collapsing almost 78 per cent in a single day.
An interesting aspect of trading in the Satyam counter was the buying at lower levels. It was not that there were only sellers in the counter. Investors could have been indulging in short-covering, an analyst said.
On the NSE, JP Morgan Fleming Asset Management Company sold over 74 lakh shares at a price of Rs 13.17 per share. Likewise, Boston Company Asset Management LLC sold 6042202 shares for Rs 18.50 per share.
The 30-share BSE sensex ended 180 points lower amid high volatility as strong recovery on selective buying support also met with sustained selling pressure in shares. The BSE bellwether settled the day at 9406.47, netting a fall of 180.41 points, or 1.88 per cent, from its last close.
The broader 50-share Nifty of the NSE tumbled 47.40 points, or 1.62 per cent, to close at 2873 from its previous close.
It was the last day for Satyam in the sensex as it would be replaced by Sun Pharma with effect from January 12. It will also be replaced by Reliance Capital in the Nifty.
However, it would be a tough call for the stock exchanges to decide whether to stop trading in the Satyam stock. It is a tough judgement to say whether you stop trading or not as the domestic capital markets have not seen such events till now, said Uday Kotak, group managing director of Kotak Mahindra, on the sidelines of a CII function in Delhi today.
On the New York Stock Exchange (NYSE), trading in Satyam Computer remained halted for the third day today. NYSE had halted trading in the American depository receipts after the scrip tumbled over 90 per cent in pre-market trading.