Financial Daily from THE HINDU group of publications
Monday, Apr 22, 2002
Financial Daily from THE HINDU group of publications Monday, Apr 22, 2002 |
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Markets
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Overseas Investments Columns - ADR Watch Wipro results affect sentiment K.S. Badri Narayanan
THE feel-good factor infused by Infosys Technologies for infotech counters during the previous week fast vanished following the disappointing Wipro results. Profit guidance from Microsoft seemed to have further alienated the confidence of investors in IT counters. The political climate following the Gujarat episode affected the overall sentiment of the domestic bourses, well captured by the indices last week. While the Dow Jones Industrial Average and the Nasdaq managed to finish on positive territory, the BSE Sensex and the broader 50-stock S&P CNX Nifty slumped. The Dow and Nasdaq closed marginally higher at 10,257.11 (10,190.82) and 1796.83 (1756.19) respectively. Back home, the Sensex slumped to 3364.40 (3510.90) and Nifty to 1100.30 (1146.50). After registering an intra-week high of $40.28. the Wipro ADR finished the week lower at $35.98 ($36.50). In the domestic market, the stock fell to Rs 1,645.35 (Rs 1,747.20). The ADR's premium to the domestic improved marginally to 6.94 per cent (2.17 per cent). IT majors — Infosys and Satyam Computer — also slipped marginally to $67.65 ($68.98) and $12.07 ($12.10) respectively. While Satyam's premium widened to 12.93 per cent (7.05 per cent), Infosys now trades at a premium of 71.83 per cent (73.70 per cent). However, Silverline Technologies was able to buck the downtrend. It finished a shade higher at both the markets. While the ADR closed at $1.81 ($1.80), the stock finished at Rs 46.85 (Rs 46.25). It now trades at a discount of 5.53 per cent (4.83 per cent). VSNL was the other ADR that finished on a firm note. It closed at $7.62 ($7.39) and the domestic equity at Rs 188 (Rs 185.05). The ADR now trades on a par with the underlying stock. The to-be-merged companies — ICICI and ICICI Bank — also languished during the previous week. While ICICI closed at $6.90 ($7.63), ICICI Bank ended weak at $5.65 ($6.20); there were not much deviations in their premiums though. Other ADRs ended on a flat note.
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