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Published on Jan 13, 2009 by Akrishna | 50 Views | Business | 0 Comments

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Satyam stock likely to be under pressure in the near term   MUMBAI: While the stock price of the beleagured Satyam Computers saw an upsurge in initial trades in hopes of a financial lifeline being provided by the goverment, brokers are sceptical whether it will sustain. Analysts say the worst is not over. The scrip was trading lower by more than 2.6% at Rs 33.50 around 11.am on Tuesday. Post announcement of three new board members—Deepak Parekh, Kiran Karnik and C. Achuthan—the market had remained relatively lukewarm to the development on Monday evening. "No specifics came out in Monday's conference. Even the government providing liquidity to Satyam comes as no surprise." Prabhudas Lilladher research head Apurva Shah told ET. "If the Board announced by government makes some positive announced in the next couple of days, stock has the potential to go upto Rs 50. But beyond that there is no hope. If there is no postive announcement, the stock will continue to see selling pressure from now onwards. As the scrip has seen a sharp recovery in the past two days, this would prompt many traders to exit the stock. No fresh positions should be added on the stock," a Technical Analyst from a Mumbai based brokerage told ET. The market is keenly awaiting the appointment of other board members, CEO and CFO. The name doing the rounds for Satyam's next CEO are Vivek Paul, former Wipro vice-chairman and currently a partner at private equity firm TPG. This, analsyts say, if true will be good for the controversy ridden company. Positive development or no, sentiment on this stock has taken a hit post in the wake of the former Satyam CFO Vadlamani Srinivas statement that the software firm's fixed deposits were unreal and fictitious and were managed with an understanding between the audit section and management. Questions have also been raised in certain sections of the media of the regulators role as regards the company.

Tags:Satyam stock, Sathyam Software

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