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Friday, January 09, 2009

Satyam -the bigest losser

Among investor classes in Satyam Computer, mutual funds may have been one of the biggest losers amid the plunge in the stock over the last couple of sessions. Contrary to popular perception mutual funds trimmed stake in Satyam after the Maytas incident, these institutions had mopped up the tainted software company's shares in December, compared to November. An ETIG study based on data from ICRA Online showed top fund houses like ICICI Prudential and HDFC Mutual Fund had trebled and doubled their exposure to Satyam, respectively. Sundaram BNP Paribas Mutual Fund and Tata Mutual Fund were the biggest buyers in the stock in percentage terms, compared to their holding in the company in November. The continued buying would have been on faith that the worst for the stock was over after the aborted Maytas takeover. But, the revelations by Satyam's chairman of an accounting scandal in the company, which dragged down the stock by close to 90% in the last couple of days, caught most investors, including mutual funds on the backfoot.

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