The Hindu Business Line : Satyam Computer jumps 34% ahead of sale

Thanks to unexpected strong show by Wells Fargo, one of the largest banks in the US, the stocks markets maintained their winning momentum for a fifth straight week. The S&P-500 rose 1.7 per cent, the Dow Jones Industrial Average increased by 0.8 per cent, while the tech-focussed Nasdaq jumped 1.9 per cent.

Foreign institutional investors’ continuous buying coupled with some aggressive domestic support helped the domestic markets to score handsome gains. The BSE Sensex surged 4.8 per cent and the NSE’s S&P CNX Nifty jumped 4.08 per cent.

Thanks to the strong show by the equity markets, none of the Indian counters end in negative. The star performer was Satyam Computer, whose ADR zoomed 34 per cent to $2.65 ($1.98), as the six-member board, headed by Mr Kiran Karnik, former President of the National Association of Software and Services Companies, will meet on Monday in Mumbai to select the highest bidder – who should also possess technical capability – to run the fraud-hit firm.

Larsen and Toubro, Tech Mahindra and private-equity firm WL Ross are the major contenders for Satyam Computer. L&T already holds 12.04 per cent stake in Satyam.

Tata Motors was the next big gainer as the ADR jumped 26.07 per cent at $7.64 ($6.06), as bookings for the Nano opened on Thursday across India.

Tata Motors is reported to have sold more than 1 lakh application forms for its Nano and dealers reportedly expect at least half the number to book the car over the next 16 days. Sales of application forms, priced at Rs 300, started on April 1.

Relatively, the other IT majors – Infosys and Wipro – scored a marginal gain of 4.73 per cent and 2.27 per cent, respectively. However, the ADR of Patni Computer jumped 18 per cent at $6.6 ($5.59). Infosys Technologies is scheduled to announce its fourth quarter financial performance on April 15 that could set the trend for IT stocks.

Among the banking counters, ICICI Bank climbed 9.62 per cent at $16.75 ($15.28), while HDFC Bank moved up by 2.95 per cent at $69.5 ($67.51) on the back of a global firm trend towards banking and financial majors.

Sterlite Industries ADR jumped 12.85 per cent at $8.17 ($7.24) as its ADR jumped 26.07 per cent at $8.17 ($7.24). Copper prices have been gaining strongly in the LME as expectation of revival in the global economy, particularly the US and China.

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