Satyam Computer Services and Wipro together accounted for more than half of the 6-billion dollar losses incurred by the Indian stocks on the American bourses .
IT entities Satyam Computer Services and Wipro together accounted for more than half of the 6-billion dollar losses incurred by the Indian stocks listed on the American bourses last week.
Tainted Satyam Computer, whose founder chairman B Ramalinga Raju had admitted to fudging of accounts worth thousands of crores, saw its market valuation erode by a 2.7 billion dollars for the week ended January 16. The scrip resumed trading on the New York Stock Exchange on January 13 after it was suspended in the wake of the accounting fraud.
The market capitalisation of another IT major Wipro, which has been debarred by the World Bank from receiving any contracts till 2011, tumbled as much as 1.5 billion dollars during the same period.
Meanwhile, the total valuation of 16 Indian stocks listed as American Depository Receipts (ADRs) on NYSE and Nasdaq, plunged six billion dollars in one week.
Trading of Satyam Computer was halted on January 7 after its ADR crashed 90 per cent following the admission by Raju.
Another major loser was ICICI Bank. The private sector lender's market capitalisation dropped one billion dollars. Similarly, valuation of HDFC declined by 883 million dollars for the week ended January 16.
Meanwhile, private sector lender market ICICI Bank's valuation plunged by 1.03 billion dollars and HDFC Bank's by 883 million dollars, respectively.
However, IT bellwether Infosys shrugged off the gloom and added 705 million dollars to its market value. The rise was primarily due to better than expected third quarter results -- the company's net profit soared 33.3 per cent to at Rs 1,641 crore for the December quarter.
The World Bank has banned Wipro for four years from getting any contracts, saying that the Bangalore-based firm had provided improper benefits to the bank's staff.
Interestingly, in December, it was revealed that the World Bank had imposed a similar ban on Satyam Computer.
During last week, other Indian ADRs which saw significant fall in their market value include telecom major Tata Communication, copper producer Sterlite Industries, auto maker Tata Motors and another telecom firm Mahanagar Telephone Nigam.
While Tata Communication's market-cap fell by 247 million dollars, Sterlite Industries saw its valuation decrease by 240 million dollars.
Further, Tata Motors and Mahanagar Telephone Nigam tumbled by 100 million dollars and 44 million dollars, respectively. IT company Patni Computer Services and internet firm Rediff.com too saw their valuation decline during the week.
Outsourcing firm Exlservices market valuation remained unchanged at 252.7 million dollars.
On the other hand, apart from Infosys, BPO entities - Genpact and WNS, pharma major Dr Reddy's Laboratories and internet firm Sify Technologies managed to add to their respective market capitalisations. These companies together gained in the range of 12 to 73 million dollars.
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