And this is despite the fact that the government has announced new board members for Satyam and also reassured a lot of people that the company would not go under. Also, the announcement that there would yet another round of cut in petrol, diesel and LPG prices in the coming days.
Last week, the 30-share Sensex of Bombay Stock Exchange (BSE) lost 5.54% and closed at 9,406.47 points on Friday, last trading day of previous week.
The broader S&P CNX Nifty of National Stock Exchange (NSE) shed 6.04% to close at 2,873 points on last Friday. An analyst from the leading broking house said, The benchmark indices were having and upward rally before the Satyam scam broke-out on last Wednesday. But in the last two trading session, there has been bloodbath on the Dalal Street . We might continue to go southwards in the coming few days as quarterly results start coming, which might have some negative impact on the markets.
Dealers also added that, in the coming week, government will announce IIP numbers which might be not surprising which may boost the sentiments of the markets. Weak cues from the global markets will also have negative effect in the indices on Monday.
After the Satyam Computer Services former chairman B Ramalinga Raju confessed to an accounting fraud, IT stocks took the beating. In the coming days, we might see some selling in the IT stocks by the foreign institutional investors (FII). The Satyam even have made the matter worse for the IT stocks, said an analyst from the leading broking house. However, some analyst do not expect any significant fall from current levels. At the same time, they are also not positive and have a word of caution for investors.
However, some markets players fell that, this is the right time to invest in the markets as the valuations are too attractive at this juncture. And the markets wont fall to drastic levels as there is sufficient domestic liquidity.