Heard on the Street

Shares of Mahindra Satyam have risen close to 20% this week, performing better than all its counterparts such as Infosys Technologies, TCS and HCL Technologies. Analysts said Infosys��� better-than-expected first quarter results have boosted investors��� confidence in the sector���s future prospects.

But, brokers feel there is much more to the rise in Satyam shares than just optimism about the software sector outlook. Backers of Satyam believe that the several lawsuits against the company, including that by Upaid, would likely to be settled out of the court. Upaid alone has sued the company for $1 billion.

An out-of-court settlement would prove to be much cheaper. It is believed that most operators in the market are owning Satyam nowadays on such expectations, sparking worries about the impact on the stock, if the company loses the lawsuit.

Contributed by Nishanth Vasudevan