Satyam opens more than 50% higher on Monday

MUMBAI: Shares of Satyam Computers rebounded on Monday trade on the back of the measures announced by the Government to rescue the company. The scrip opened more than 50% higher and was trading at Rs 37 at 10.20 am, with close to 1.2 cr shares changing hands on the BSE.

Brokers said that the spike in price was anticipated but don't expect the upmove to be sustained in the wake of the fact that there is "too much wrong that needs to be righted". They expect to book profits later in the day.

The government on Sunday stepped in to appoint a three-man board in a bid to restore confidence in the outsourcing company after the promoter confessed to cooking up the balance sheets and propping one of the biggest corporate frauds in India.

Rahul Amrutlal, an individual CFP told ET, "For time being it seems good. However the nitty gritties of the government involvement to rescue is left to be seen. Also, we have to see if they extend some monetary support to Satyam to take care of salaries and other cost of the company in the short term."

However some experts believe that traders squared off their positions in the derivatives segment as the contracts would not be allowed to be traded after Jan30.