Sensex tumbles over 750 pts as Satyam chief resigns

MUMBAI: Indian equities markets were reeling under tremendous selling pressure Wednesday after a shocking scam by the promoters of Satyam
Computers came to light.

Ramalinga Raju, chairman of Satyam Computers resigned from his post and confessed to indulging in fraudulent activities like inflating the books for several years. ( Watch )

Raju has written a letter to the board giving details of the balance sheet. Balance Sheet has inflated cash balances of Rs 5040 crore and accrued interest of Rs 376 crore is non-existent. Rs 1230 crore was arranged to Satyam and is not reflected in the books. As per the revelations, second Quarter numbers were inflated to Rs 2700 crore vs Rs 2112 crore actual numbers. No board member had any knowledge of the real situation of the books. ( Watch )

Bombay Stock Exchange’s Sensex breached support of 10,000 mark. At 1:45 pm, Sensex was at 9564, down about 772 points.

National Stock Exchange’s Nifty was at 2908, down about 200 points.

Satyam Computers (-61.42%), Jaiprakash Associates (-13.24%), Reliance Communications (-10.91%), DLF (-10.29%) and Reliance Infrastructure (-8.11%) were the major Sensex losers.

Tata Steel (1.32%), Infosys Technologies (0.21%) and Maruti Suzuki (0.20%) were the only gainers.

Market breadth was negative on the BSE with 1670 losers and 541 advances.

News via