The Satyam fraud is a setback for Indian business and will continue to be an irritant for India Inc in the global market place, the prime minister's economic panel said on
"The odour of this scandal will continue to be an obstacle and irritant for Indian businesses in their efforts to conduct business, acquire assets and secure finance in the global market place," said a review of Indian economy for 2008-09 by thepanel
The Prime Minister's Economic Advisory Council said it is imperative that the regulator and investigating agencies get to the bottom of this scandal and bring the guilty to book।
The review said the development should act as a reminder as to how much more careful an emerging economy needs to be in its efforts to maintain growth and secure a position in the world community।
"The recent fraud and possible embezzlement of funds ... is a setback for Indian business and for the economy at large। It has undercut confidence among customers, investors and employees in the industry," the report said.
"Satyam is really a setback, there's no doubt on that। But I think the government has taken swift steps to minimise the damage," panel chairman Suresh Tendulkar told reporters after releasing the review.
However, Tendulkar expressed confidence that the big Indian IT companies would not be much impacted by Satyam scandal, saying they have announced good results and are quite optimistic.
"I think our IT industry at one level has always surpassed everybody because they have managed to increase their productivity। That is quite remarkable. From that point of view, I don't expect the impact to be very significant," he said.
ensex ends week low at 8,674.35
The Bombay Stock Exchange 30-share bellwether fell to close at its nine-week low of 8,674।35 at the week-end, as global negative developments and disappointing quarterly earnings by some key corporates cast a shadow over the market sentiment.
The weekly slide was extended to third straight week as the bourses remained under pressure even as investors pinned hopes on Barack Obama, who took over as the 44th US President on Tuesday, January 20।
In the week to January 24, the BSE barometer registered a net loss of 649।24 points or 6.96 per cent from last weekend's close, on heavy selling triggered by worries that the global banking sector was in deep trouble after Royal Bank of Scotland on Monday forecast a staggering $40 billion losses -- the biggest in the UK corporate history.
On the domestic front, India's largest housing finance company HDFC and its third largest software exporter Wipro disappointed the market with their lower-than-expected third quarter results।
The market sentiment was dampened by Planning Commission Deputy Chairman Montek Singh Ahluwalia's statement ruling out out any more stimulus packages for the industry।
Quarterly results announced by Reliance Communications, Ranbaxy Laboratories and Reliance Infra also fell short of market expectations।
The country's largest private sector firm Reliance Industries, which has highest weight in the Sensex, recovered part of its initial losses after the company announced nearly 10 per cent fall in its Q3 net profit, as the fall was lower than the analysts forecast। RIL dropped by 5.36 per cent over the week.
All thirty shares from the Sensex pack showed marked falls in the week under review। The broader 50-share Nifty of the National Stock Exchange tumbled by 149.90 points or 5.30 per cent to end the week at seven-week low of 2,678.55 from its last weekend's close.
The consistent capital outflow and negative activity by domestic institutional investors also were the major cause of concerns for the market।
The foreign Institutional Investors pulled out more than 2,268 crore (including Friday's provisional number of Rs 523 crore) from equity during the week। As per the Sebi data, they sold shares worth Rs 3,961.80 crore so far in the month.
The scandal-hit IT major Satyam Computer surged by Rs 14।40 or 58.90 per cent as several major corporates from India and abroad showed interest in acquire the software major.
Realty, Bank and Metal sectors witnessed large-scale sell-off during the week। Losses in these stocks could be gauged by the slide in their indices.
During next week, the Reserve Bank's quarterly review of the monetary policy on Tuesday is expected to set the tone for the market while analysts expected volatile trade ahead of expiry of derivatives series on January 29।
The broad-based BSE-100 Index slumped by another 331।97 points or 6.95 per cent to 4,441.81 from its last weekend's close of 4,773.78.
The BSE 200 Index and the Dollex-200 too were quoted sharply lower at 933।20 and 348.74 at the weekend, compared with 1,106.64 and 377.55 at the last weekend.
On the NSE, the S&P CNX Defty dipped by 122।95, or 6.12 per cent, to 1,885.35 from preceding weekend's close of 2,008.30.
The CNX Nifty Junior also plunged further by 321.50, or 7.46 per cent, to end the week at 3,989.40 from 4,310.90 last weekend.
The weekly slide was extended to third straight week as the bourses remained under pressure even as investors pinned hopes on Barack Obama, who took over as the 44th US President on Tuesday, January 20।
In the week to January 24, the BSE barometer registered a net loss of 649।24 points or 6.96 per cent from last weekend's close, on heavy selling triggered by worries that the global banking sector was in deep trouble after Royal Bank of Scotland on Monday forecast a staggering $40 billion losses -- the biggest in the UK corporate history.
On the domestic front, India's largest housing finance company HDFC and its third largest software exporter Wipro disappointed the market with their lower-than-expected third quarter results।
The market sentiment was dampened by Planning Commission Deputy Chairman Montek Singh Ahluwalia's statement ruling out out any more stimulus packages for the industry।
Quarterly results announced by Reliance Communications, Ranbaxy Laboratories and Reliance Infra also fell short of market expectations।
The country's largest private sector firm Reliance Industries, which has highest weight in the Sensex, recovered part of its initial losses after the company announced nearly 10 per cent fall in its Q3 net profit, as the fall was lower than the analysts forecast। RIL dropped by 5.36 per cent over the week.
All thirty shares from the Sensex pack showed marked falls in the week under review। The broader 50-share Nifty of the National Stock Exchange tumbled by 149.90 points or 5.30 per cent to end the week at seven-week low of 2,678.55 from its last weekend's close.
The consistent capital outflow and negative activity by domestic institutional investors also were the major cause of concerns for the market।
The foreign Institutional Investors pulled out more than 2,268 crore (including Friday's provisional number of Rs 523 crore) from equity during the week। As per the Sebi data, they sold shares worth Rs 3,961.80 crore so far in the month.
The scandal-hit IT major Satyam Computer surged by Rs 14।40 or 58.90 per cent as several major corporates from India and abroad showed interest in acquire the software major.
Realty, Bank and Metal sectors witnessed large-scale sell-off during the week। Losses in these stocks could be gauged by the slide in their indices.
During next week, the Reserve Bank's quarterly review of the monetary policy on Tuesday is expected to set the tone for the market while analysts expected volatile trade ahead of expiry of derivatives series on January 29।
The broad-based BSE-100 Index slumped by another 331।97 points or 6.95 per cent to 4,441.81 from its last weekend's close of 4,773.78.
The BSE 200 Index and the Dollex-200 too were quoted sharply lower at 933।20 and 348.74 at the weekend, compared with 1,106.64 and 377.55 at the last weekend.
On the NSE, the S&P CNX Defty dipped by 122।95, or 6.12 per cent, to 1,885.35 from preceding weekend's close of 2,008.30.
The CNX Nifty Junior also plunged further by 321.50, or 7.46 per cent, to end the week at 3,989.40 from 4,310.90 last weekend.
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