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MUMBAI: Beleaguered software services major Satyam on Wednesday bit the dust on the bourses and lost as much as Rs 10,000 crore in market capitalisation in a single trading session, after the scrip dipped to hit an all-time low level.

MUMBAI: National Stock Exchange said on Wednesday it will remove Satyam Computer Services Ltd from its S&P CNX Nifty 50-share index from Jan 12.

The head of the outsourcing firm resigned on Wednesday, disclosing profits had been falsely inflated for years, sending its shares crashing nearly 80 percent.

Ramalinga Raju, Chairman of Satyam resigned from the Satyam board today, reports CNBC-TV18. He wrote a letter to the Satyam board admitting that the IT major’s balance sheet has an inflated cash and bank balance of Rs 5,040 crore.

Raju’s game plan had the potential to put foreign investors off India

Satyam Computer Services Ltd may have pulled the plug on a plan to effectively enrich its promoter Raju family by acquiring two other related companies in the infrastructure business. But Satyam’s chairman B. Ramalinga Raju needs to step down and here is why:

Domestic brokerages are advising clients to discard Satyam Computers from their portfolios.

Brokerage India Infoline has dropped coverage on Satyam Computer stock with immediate effect following the disclosures by the management on the accounting irregularities.

Commenting on the magnitude of the Satyam scam, Mohandas Pai, Head-HR Administration, Infosys, said, he had never imagined something of this proportion would happen. “It is a bad day for corporate India and IT industry.” He feels that the auditing process should get more rigorous and that all companies should make sure that bank balance confirmation goes directly to auditors.

Religare Hichens Harrison Research has recommended a sell rating on Satyam Computer Services. The research firm continues to maintain its earlier negative view on the Technology sector.

Religare Hichens Harrison Research’s report:

Ramalinga Raju, Chairman of Satyam has resigned from the board, reports CNBC-TV18. In his letter to the board, Raju admitted that the IT major’s balance sheet has inflated cash and bank balance of Rs 5,040 crore. “No board member had any knowledge of the real situation. Accrued interest of Rs 376 crore in books is non-existent. Rs 1,230 crore was arranged to Satyam, but was not reflected in the books.”

MUMBAI: Satyam Computers may be removed from the sensex and nifty following the revelation of manipulation in the company’s accounts, analysts said.

Dear Investors/Clients,
NSEMUMBAIBULL Very Strong BUY : Radico Khaitan Ltd
BSE Code : 532497
NSE Code : RADICO

At current price this scrip is looking attractive price. Target with in 2 weeks is Rs.85/-

Happy Trading & Investing,

CMP: Rs 222.10
Target price: Rs 270

Kotak Securities’ private client research has maintained its ‘accumulate’ rating on Cummins, citing likely strong earnings in the October-December quarter, or the third quarter. But the brokerage expects the growth to taper off in the fourth quarter.

CMP: Rs 1,041.20
Target price: 1,695

BNP Paribas has maintained its ‘buy’ rating on Sun Pharma and also its price target of Rs 1,695 after the company initiated an out-of-court settlement with the promoters of Taro to acquire it.