Satyam deal leads to drop in market
Mumbai: The announcement by Satyam Infoway that it had acquired a 25 per cent all stock stake in cricinfo.com, led to a sharp crash in the prices of infotech major Satyam Computers, as a result of which the stockmarket suffered a sharp beating. Analysts and dealers thought that the deal was "very expensive" and "overvalued".

The BSE Sensex which opened at 4,609.78 points, hit a high of 4,705.49 only to close at 4,531.53, reflecting a net gain of 78.06 points over the previous close. The S&P CNX Nifty opened at 1,390.95 hit a high of 1,461.05 only to end the day at 1,404.60 gaining 15.35 points over the previous close.

The market resumed on a distinctly firm note following a flare up in the Nasdaq composite index, which rose 410 points in the past two trading sessions as fears of hike in interest rates in the US receded after the release of weak economic data for May '00.

However, equities failed to hold early gains as the sensex nose-dived nearly 220 points from intra-day high of 4,705 to close at 4,532. At close, the sensex showed a net gain of 78.06 points, or 1.75 per cent, over last week's close. The broader BSE national index gained 54.08 points or 2.43 per cent at 2,224. In all, the advancing issues led the declining ones by 972 to 463, indicating firmer undertone.

Among old economy stocks, HDFC, Punjab Tractors, Ashok Leyland and Reliance Industries posted marginal gains.
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