Sun Pharma replaces Satyam in Sensex club

Satyam Computer Services has been expelled from all equity indices of the Bombay Stock Exchange (BSE). 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. Sun Pharma has replaced Satyam in the Sensex, while GlaxoSmithkline Pharma has replaced Satyam in BSE-100. On Wednesday, the National Stock Exchange (NSE) dropped Satyam from its equity indices. In the 50-share S&P CNX Nifty, Reliance Capital has replaced Satyam, while Glenmark Pharmaceuticals has come in place of Satyam in the CNX 100 index. The changes will be effective from January 12 on both exchanges. Satyam shares tanked 78% to Rs 39.95 at close of Wednesday’s trading session, 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 about a month ago.