The National Stock Exchange on Wednesday removed Satyam [Get Quote] from its benchmark index Nifty and the IT firm will be replaced by Reliance Capital [Get Quote] with effect from January 12.
Satyam would also be removed from various other indices like CNX 100, S&P CNX 500,CNX IT and the CNX Services sector index, the NSE said in a statement.
"The index maintenance sub-committee has decided to make the following changes in various indices during its review. These changes shall become effective from January 12, 2009," it added.
Further, Glenmark Pharmaceuticals [Get Quote] will replace Satyam Computer Services in the CNX 100 Index, and Cairn India [Get Quote] will replace it on the S&P CNX 500 Index.
Besides, Core Projects and Technologies will replace the troubled software services firm in the CNX IT Index, while Power Grid Corporation of India (PGCIL) will be in place of Satyam in the CNX Services Sector Index.
Meanwhile, Reliance Capital replaced Glenmark Pharmaceuticals in the CNX Nifty Junior Index.
Satyam Computers may also be removed from the Sensex following the revelation of manipulation in the company's accounts, analysts said.
Rajiv Mehta, senior analyst with India Infoline [Get Quote], a large brokerage house said his firm has immediately stopped covering Satyam and many other brokerage houses are also expected to do the same.
There will not be any investor interest in the company anyway. The company may be removed from Sensex and Nifty, he said.
With the fall in its stock prices, Satyam has lost its weightage in the Sensex considerably over the recent past and currently has weightage of only 1.56 as of Tuesday.
While in Nifty, the weightage is only 0.63 per cent.
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