Mahindra Satyam scrip on Wednesday rallied by 14.90 pc

IT firm Mahindra Satyam scrip on Wednesday rallied by 14.90 per cent to hit an eight-month high of Rs 109.45 at the Bombay Stock Exchange, as investors anticipated strong financial performance by the company for fiscal years 2008-09 and 2009-10.


Mahindra Satyam, formerly known as Satyam Computers, will be announcing its results on September 29. It had not published its financial results since its founder B Ramalinga Raju in January 2009 admitted to fudging the company’s accounts for years.



Following the revelation, the company’s administration was taken over by a government-nominated Company Law Board (CLB), which subsequently cleared sale of the company to Mahindra Group.


The CLB on a request from Mahindras had allowed the company to submit the audited re-stated accounts for the last two fiscal years by September 30, after the latter failed to meet the June 30 deadline.


“The fundamentals of the company are very strong with the management of Mahindra Group, and the market is expecting excellent results from the company next week, which is triggering the upmove in the stock,” Geojit BNP Paribas Assistant Vice President Gaurang Shah said.


The rise of 14.90 percent in the company scrip price was significant as the broader market turned weak during the afternoon session, before finally ending in the negative zone.


The 30-share benchmark gauge Sensex that crossed the magical 20,000-mark yesterday after 32 months, today lost momentum and closed 59.83 points lower at 19,941.72. Mahindra Satyam was trading at Rs 107.65 at the BSE, a rise of 13.02 per cent since yesterday’s close.


Exactly an year ago on Sep 22, 2009, shares of Mahindra Satyam had hit a one-year high of Rs 123 on BSE.


The scrip was doing well at the National Stock Exchange too, where it ended 13.13 per cent higher at Rs 107.70 at the day’s close. In terms of volume, over 16 crore shares were traded on both the bourses.


Apart from Mahindra Satyam, most of the IT stocks underperformed, in line with the weaker broad market.


IT giant Infosys Technologies, which carries the maximum weight on Sensex after RIL, remained under pressure and ended at Rs 3.011.60, down 1.53 per cent from the previous close.


Similarly, TCS also finished the day on a weak note at Rs 936.25, down 1.73 per cent from previous close.


Satyam Computers will come out with its financials for fiscal years 2008-09 and 2009-10 on September 29, for the first time since its founder B Ramalinga Raju admitted to falsifying the company’s accounts.
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