New York, Jan 18: It seems IT sector of India is facing a bad time.Satyam Computer Services and Wipro are being blamed for a loss of 4 billion dollars on the American bourses in the last week. Satyam founder B Ramalinga Raju has been found guilty of committing a fraud that has led the market valuation of his company to diminish by 2.7 million US dollars for the week ended January 16. The trading on shares of the company resumed on January 13 after it closed down following the exposure of the accounting fraud.
Wipro, another leading IT company which has been barred from the World Bank from receiving any contracts till 2011, also has seen its market valuation plunging down to approximately 1.5 billion US dollars during the same period.
The total valuation of 16 Indian stocks listed as American Depository Receipts (ADRs) on NYSE and Nasdaq, dropped by six billion dollars in a single week. Trading of Satyam stopped after its American Depository Receipt (ADR) crashed to 90 percent after the admission of Raju.
The private sector lender's market capitalisation dropped one billion dollars making ICICI a major loser. Valuation of HDFC presented a sad picture of decline of 883 million dollars for the week ended January 16.
However, Infosys remained largely unaffected and added 705 million dollrs to its market share, thanks to the company's net profit which soared 33.3 per cent to at Rs 1,641 crore for the December quarter. The queue of other Indian ADR"s who lost their market value seems ending with telecom major Tata Communication, copper producer Sterlite Industries, auto maker Tata Motors and another telecom firm Mahanagar Telephone Nigam.
While Tata Communications fell by 247 million dollars, Sterlite industry"s market cap declined by 240 million dollars. Tata Motors got hard hit of a 100 million dollrs and Mahanagar Telephone Nigam fell by 44 million dollars.
Other than infosys, leading BPO"s like Genpact and WNS, pharma major Dr Reddy's Laboratories and internet firm Sify Technologies managed to hold a safe position in the market capital. These companies together gained in the range of 12 to 73 million dollars.