Satyam Computer had the market whistling on Friday as rumours were rife on the counter that it was in the process of bagging a $10-million order from global development financier, the World Bank.
The scrip of India's fourth largest software exporter rose a good 1.72% to Rs 216.30 on BSE by 10:50 IST. Over 1.4 million Satyam shares were traded by then. The rumours lifted sentiment for the stock today after a decline over the seven sessions between 3 and 12 February 2003, when it lost 8% to Rs 212.65 from Rs 231.10.
Rumours have it that the World Bank is negotiating a $10-million contract for offshore software development and support with the company. The contract expectedly is for a period of 3-5 years. The deal is believed to be at the final stage of discussion and is likely to be concluded by this weekend itself.
Buying support also comes from the scrip's relatively lower valuation, it being battered over the last few sessions after dismal results as well as rising fears over a possible US-Iraq war.
Today, 14 February 2003, is a crucial date on the UN's Iraq agenda as chief UN weapons inspector Hans Blix and IAEA chief Mohamed ElBaradei will submit a key report on Iraq to the UN Security Council on Friday.
The market's cautiousness over tech stocks of late is understandable as war in Iraq will have an impact on local as well as global markets. In the event of a US-Iraq war, global orders to Indian tech companies may decline, putting pressure on both top lines as well as bottom lines of these companies.
For the third quarter ended 31 December 2002, Satyam Computer posted a 2.2% fall in net profit to Rs 116.73 crore (Rs 1.16 billion) even as net sales increased by 19.8% to Rs 522.26 crore (Rs 5.22 billion).
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