The Government is looking at all aspects to help troubled outsourcer Satyam Computer Services Ltd,Commerce and Industry Minister Kamal Nath said. "The Government is looking at all aspects. Once the board comes up with its proposals,Government will consider," Nath told reporters. He did not elaborate what steps the government might take to help Satyam. Calling it a unique case Nath added that Govt will consider all assistance for Satyam board. Earlier Indian shares fell 3.15 per cent to their lowest close in more than five weeks on Monday as investors braced for tough quarterly earnings,but scandal-scarred Satyam jumped 44 per cent on hopes a government-appointed board will rescue the company. Traders said the broader market was also weighed down by concerns about tighter regulations and more negative disclosures by companies. Shares in Satyam Computer Services Ltd jumped 44.2 per cent to 34.40 rupees on hopes a newly constituted three-member board,appointed by the government,would help salvage the company's clients and staff. Deepak Parekh,chairman of Housing Development Finance Corp and a new director of Satyam,is expected to address a news conference at 5 pm. Satyam's market value had slumped to $330 million last week from more than $7 billion just six months ago following revelations of an accounting fraud. Wipro Ltd shed 9.3 per cent to 227.35 rupees after the No. 3 outsourcer said the World Bank had barred the company in June 2007 from direct contracts until 2011,citing a conflict of interest. The 30-share BSE Index dropped 296.42 points to 9,110.05,its lowest close since Dec. 5. It briefly pared losses to 0.8 per cent after industrial output unexpectedly rose in November,but then fell 4.1 per cent before pulling back. Ved Prakash Chaturvedi,managing director at Tata Mutual Fund,said the market was reacting to negative news in India and globally. "Funds,both domestic and foreign,are not buying and that is a cause for concern. People are also scared that corporate earnings may not be as good as previous quarters or maybe worse," he said. Mid-sized software services firm Megasoft Ltd fell to an all-time low of 13.80 rupees after the World Bank said it had barred the firm for four years in December 2007 for participating in a joint venture with bank staff while conducting business with the bank. The stock closed down 0.6 per cent at 15.75 rupees. "People are apprehensive there might be more such disclosures and there are wild rumours doing the rounds," said Gaurang Shah,chief manager at Geojit Financial Services. Twenty-eight of the BSE index components fell,while in the broader market losers overwhelmed gainers in the ratio of 1.96:1 on above average volume of 283.7 million shares. No. 2 outsourcer Infosys Technologies,which announces quarterly results and gives its outlook on Tuesday,closed down 3.2 per cent at 1,156.60 rupees.
