Satyam scam triggers Sensex crash
Sensex, the benchmark of Bombay Stock Exchange crashed by a whopping 749 points on concerns over corporate governance after India’s fourth largest IT company by sales Satyam Computer Services admitted that its accounts were fudged to show profits.
Panic selling was seen in all the sectors and the indices lost at an average dip of 2.08% to 16.95%. The counter was at the receiving end and slumped by 77.69 per cent at the end.
The Bombay Stock Exchange 30-share Sensex initially touched a high of 10,469.72, up by nearly 134 points, but collapsed to close at 9,586.88, a net loss of 749.05 points, never seen since October 24, 2008. The Sensex ended in negative territory for the first time after January 1, 2009.
The broader 50-share Nifty of the National Stock Exchange also plunged 192.40 points or 6.18 per cent to 2,920.40 from the previous close.