Mumbai, Jan. 11: Beleaguered Satyam Computer Services may get some respite on the bourses following todays appointment by the Centre of a three-man independent board.
The move will certainly improve sentiment. Though it is difficult to say by how much the Satyam stock will gain, one can say that the huge selling pressure in the counter can get arrested, an analyst with a local brokerage said.
Besides, the appointment will benefit the market as a whole.
With such eminent persons appointed to the board, investors will now look at the next course of action that they will take, the analyst said.
HDFC chairman Deepak Parekh, former Nasscom chief Kiran Karnik and former president of the Securities and Appellate Tribunal C. Achuthan are the board members.
On Friday, the Satyam stock was hammered to Rs 6.30 on the National Stock Exchange — its lowest level till date — but clawed back to close at Rs 23.75, a fall of almost 41 per cent over Thursdays level. On the Bombay Stock Exchange, the stock tumbled to an 11-year low of Rs 11.50 in intra-day trading.
Rajus confessions also impacted the broader market with the BSE sensex crashing around 900 points during the week to end at 9406.47 on Friday.
Investors fear the companys accounting shenanigans can keep foreign institutional investors away for some time.
The FIIs have also been selling the stocks of companies whose accounts have been vetted by Satyam auditor Price Waterhouse.
However, market circles say any turnaround in Satyams share price will not last long as investors are worried over the future of the Hyderabad-based IT services company.
Arun Kejriwal, director at KRIS, said, The stock may or may not go up. But the question to be asked is what is left in the company. According to Kejriwal, investors willing to continue in the Satyam counter should brace for more bad news over the next few days.
Analysts said IT stocks could be under fresh selling pressure if Infosys came up with disappointing third-quarter numbers or lowered its guidance. The company is due to announce its results on Tuesday.