Shares of troubled Satyam Computer Services posted a gain of nearly $250 million on the New York Stock Exchange (NYSE) even as Indian stocks listed on American bourses together lost $3 billion in their total market capitalisation last week.
The total valuation of 16 companies trading on NYSE and Nasdaq as American Depository Receipts (ADRs) tumbled by $3 billion for the week ended January 23.
Nonetheless, Satyam, IT firm Patni Computer Systems and outsourcing entity WNS together managed to add to their market values. However, Satyam managed to buck the trend and added $246 million to its valuation after its shares witnessed some positive movement on talks of a possible buyout.
The software exporter, battered after its founder B Ramalinga Raju admitted to fudging company’s accounts to the tune of Rs 7,800 crore, had seen its valuation erode by $3 billion in valuation for the week ended January 16.
Meanwhile, private sector lenders ICICI Bank and HDFC Bank, and IT majors Wipro and Infosys saw significant losses. ICICI Bank and Wipro were the biggest losers, shedding more than $1.5 billion as a whole. ICICI Bank witnessed its market capitalisation plunge by $935 million, while that of Wipro dropped by $819 million.
Further, HDFC’s valuation decreased by $698 million, whereas Infosys declined by $623 million. Last week, global markets were highly volatile mainly due to gloomy economic data and disappointing corporate results. The UK has officially entered a recession for the first time in 18 years, while Singapore has projected its GDP could shrink by 5 per cent this year.
Among other Indian ADRs, copper producer Sterlite Industries and pharma company Dr Reddy’s Laboratories saw their market capitalisation slide by $241 million and 156 million respectively.
Telecom entities Tata Communication and Mahanagar Telephone Nigam (MTNL), outsourcing firms Genpact and Exlservice, auto maker Tata Motors and internet companies Rediff and Sify Technologies too witnessed their valuation fall in the range of $0.5-105 million.
The swearing in of Barack Obama as the 44th President of the United States failed to cheer investors as American bourses went into a tailspin last week primarily on account of weak corporate results and lingering banking woes.
