Friday January 9, 06:27 AM
Shares in fraud-hit Indian IT giant Satyam slump 70 pct
MUMBAI (AFP) - Shares in troubled Indian outsourcing giant Satyam Computers slumped over 70 percent in opening trade Friday, as investors dumped the stock on fears over the company's future, dealers said.
Satyam stock fell 71.2 percent or 28.45 rupees to a day's low of 11.5 at the Mumbai stock exchange, a day after two US shareholder lawsuits were filed against the firm for accounting fraud.
The benchmark 30-share Sensex was down 101.49 points or 1.06 percent to 9,485.39 in early dealings Friday.
"There is no clarity on what is happening in the company... investors just do not have belief in what the interim management appears to be saying," said Advait Date, dealer with brokerage BHH Securities.
Bosses at Satyam vowed Thursday that the company would remain in operation despite being rocked by revelations of a billion-dollar accounting fraud.
Interim chief executive Ram Mynampati said he and senior colleagues were shocked at disclosures made by founder-chairman B. Ramalinga Raju that company accounts and assets had been falsified and profits inflated.
The Satyam stock has now fallen over 90 percent in the past four weeks.
The market regulator Sebi is currently at the company's headquarters in Hyderabad to investigate the scandal.
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