Satyam fiasco led stockbrokers panic selling shares

In the wake of Satyam fiasco, stockbrokers are panic selling the shares of the companies where PWC has been an auditor. The 102 companies where PWC is the auditor has seen a steep fall in the price since Ramlingam Raju informed the SEBI about the fraud.

Since the Satyam accounting scam broke out, most companies audited by PWC are trading lower in the range of 5 and 15% on an average daily.

Said a stockbroker, "The credibility of the auditor is in question and there are strong rumours that other 10 to 15 companies might suffer Satyam's fate in near future. We do not want to take any risk and suffer losses so we are selling the stocks of the companies audited by PWC."

If the market speculations are to be believed some of the companies are also planning to change their auditors due to this negative effect. However, as of now all the 102 companies which also include names like HCL Technologies and Reliance Power are seeing fall in their prices. That too more than the average fall in the market.

Top PWC clients like HCL Technologies (down 3.6% at Rs 106.25), Reliance Power (down over 5% at Rs 107), Bayer Cropscience (down over 6% at Rs 211), Gokaldas Export (down over 3% at Rs 82) and Marico Ltd (down over 4% at Rs 53.55) have been witnessing severe selling by investors and traders (Current market price at 1.45 PM)