The News International Team
11:30am Satyam Case Verdict: The Hyderabad Special Court probing the Satyam Computer Services accounting fraud has ruled the company’s founder B Ramalinga Raju and nine others guilty of cheating, forgery and criminal breach of trust.
The court is now deciding on the quantum of sentence to the guilty.
The other nine include Ramalinga Raju’s brothers B Rama Raju and Suryanarayana Raju, former CFO Vadlamani Srinivas, former PwC auditors Subramani Gopalakrishnan and T Srinivas, ex-Satyam internal auditor VS Prabhakar Gupta, and former Satyam employees G Ramakrishna, D Venkatpathi Raju and C Srisailam.
In July last year, the Securities and Exchange Board of India had fined Satyam founders Raju brothers-Ramalingam and Rama-and three former senior executives a total of Rs 1849 crore for their role in the accounting fraud that eventually led the company being sold to Tech Mahindra.
The three former Satyam executives penalized by Sebi were Vadlamani Srinivas, G Ramakrishna, and VS Prabhakara Gupta.
11:00am Market Check
The market entered into consolidation mode after rallying in previous sessions. Banking stocks gained while pharma stocks led declines.
The Sensex rose 21.03 points to 28728.78 and the Nifty gained 6.95 points at 8721.35. The broader markets outperformed benchmarks marginally; the BSE Midcap and Smallcap indices climbed 0.5 percent.
About 1300 shares have advanced, 941 shares declined, and 159 shares are unchanged on the BSE.
While keeping rating unchanged at Baa3, Moody’s upgraded India’s outlook to positive from stable. The rating agency believes that there is an increasing probability that actions by policy makers will enhance the country’s economic strength.
Asian markets traded mixed. Hang Seng and Tokyo outperformed the region to scale fresh multi-year highs. Meanwhile, Shanghai fell post yesterday’s seven-year closing highs.
Frontline pharma stocks saw profit taking. Bank of America Merill Lynch has downgraded Sun Pharma to underperform from buy and downgraded Lupin, Cipla and Cadila Healthcare to neutral from buy despite being positive on long term prospect. The brokeragey says it is difficult to find value and while some multiple expansion is justifiable given higher returns, some stocks in the sector may be priced to perfection with less room for error. Sun Pharma, Dr Reddy’s Labs, Cipla and Lupin dropped 2-3 percent.