Monday, April 13, 2009

Tech Mahindra Wins Satyam

Tech Mahindra today won the bid for a 31% stake in Satyam Computers. It is estimated that the Tech Mahindra will pay Rs.1757 crores for the 31% stake. L&T was the other major which had participated in the bidding process. Spice Corp and Cognizant Technologies did not participate in the bid while the participation of private equity major Wilbur Ross could not be ascertained. Tech Mahindra won the bid by bidding at Rs.58 per share, a 23% premium to the last closing price of Satyam. Prof. JR Varma, in his blog, said that the acquisition was hugely beneficial to Tech Mahindra but detrimental to the interests of the Satyam shareholders. 

As far as the markets are concerned, one must wait for a fall before buying, cautions Devina Mehra of First Global. Mr. Jitendra Sriram, Vice President and Fund Manager - Equities at HSBC, feels that there seem to be more chances of the market coming down than going up. He says that the corporate results will set the course of the markets and that the burden of expectations in stocks may lead to a pullback.

I have talked a lot about dojis in my previous blog posts and this article clarifies the use of a doji as a reversal signal.

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Happy Investing!!!

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