IMPACT OF INTEREST RATES AND SATYAM SCANDAL ON INDIAN STOCK MARKET
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2. VAZIM MAHAMOOD.P
3. RAKESH.K P
4. URVISH NAGPAL
5. SHIJIN.P V
6. RIJAPUL ISLAM
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8. Cond…. It represents the secondary market where existing securities are traded. Stock exchange provides an organised mechanism for purchase and sale of existing securities.
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10. The interest rate that applies to investors is the U.S. Federal Reserve's federal funds rate. This is the cost that banks are charged for borrowing money from Federal Reserve banks.
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12. Businesses are also indirectly affected by an increase in the federal funds rate as a result of the actions of individual consumers.
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15. Investors wish to see their invested money increase in value.
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17. Contd… Satyam has lost more than 10000 Crore rupee in a single day trading. $8 Crore changed hands at BSE and 33 Crore changed hands at NSE. Satyam’s American Depository Receipts, listed on the New York Stock Exchange, witness a sharp plunge when the American markets open trading in said stock has been suspended to.
18. Contd…. Fund Houses sold shares in the open market - Swiss Finance Corp Mauritius Ltd: Sold 7786759 shares at Rs.74.61 - Aberdeen International India Opportunities Mauritius Ltd: Sold 9830811 shares of the company at Rs.43.41 - Aberdeen Asset Managers Ltd Aberdeen Global Asia Pacific fund: Sold 4179064 shares at Rs.43.41 15 Indian stocks on US bourses bore the brunt of the negative market sentiment and witnessed a fall of $1.94 billion in their combined market capitalization.
19. Contd…. Bombay's main benchmark index tumbled 7.3 percent and the Indian rupee fell sharply. Realty and infrastructure shares tumbled on market perception that a number of firms in these sectors do not strictly follow good corporate governance practices. Satyam’slargest shareholder, Aberdeen AMC, dumped the tainted software entity’s shares.
20. Contd… SEBI announced the certification of corporate results from the December 2008 quarter by auditors would be subject to peer review to assure investors that the fraud at Satyam was unique. India’s biggest engineering and construction firm by revenue L&T slumped 12.7%to Rs 717.60 on fears that it is likely to register huge losses on its exposure to Satyam Computer taken just before the accounting fraud.
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