Mahindra Satyam Stock Price Depends On Financial Results

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MUMBAI, INDIA (Gaea Times.com) - Mahindra Satyam stock price has declined by 1.46% after having risen for three consecutive sessions. The shares rose by 16% this week and 33% this month but this bullish trend seems to have been temporarily paused with a slight fall. This small fall in the shares is not of much concern now as everything depends on the company’s financial results being released next week. If the financial position of the company appears to be sound more investors might come in and the bullish trend may very well continue. The market meanwhile is full of speculations of an optimistic nature regarding the financial results of the company.

One of the reasons for the stock surging upwards is being attributed to the company announcing its financial results next week. On Wednesday itself more than 20 million shares exchanged hands in a block deal at an average price of Rs.112. On thursday though the share closed at a price of Rs 106 after a 1% dip. It is being reported that as the company has very low institutional holdings and the upward movement of the Mahindra Satyam shares are being attributed to retail traders.

The problem lies for those investors who have invested as a result of the current bullish trend in the stocks. There stock value will depreciate if the financial results of the company next week are not satisfactory. A sharp correction in the shares of Mahindra Satyam may be seen in such a scenario. The company will announce its results on 29 September. The financial results have not been published since January last year when its founder Ramalinga Raju admitted to fudging the company’s account for years.