Rel Cap replaces Satyam in Nifty club

Satyam Computer Services has been expelled from all equity indices of the National Stock Exchange (NSE). The decision comes in the wake of Satyam promoter B Ramalinga Raju’s admission of accounting fraud, and the massive erosion in market capitalisation, subsequently. Reliance Capital has replaced Satyam in the S&P CNX Nifty, while Glenmark Pharmaceuticals has come in place of Satyam in the CNX 100 index. The Bombay Stock Exchange (BSE) is yet to decide on dropping Satyam from its equity indices. “In light of today’s development at Satyam, BSE will take stock and take an appropriate view,” a BSE spokesperson said in a release. Satyam shares tanked 78% to Rs 39.95 at close on Wednesday, with Rs 9,376 crore of market capitalisation being wiped out. This has reduced the weightage of the stock in the indices by nearly 85% compared with its strength a month ago. Reliance Capital has a market capitalisation of Rs 12,739 crore and would have a weightage of about 0.7 in Nifty as per the current market prices.