Financial Daily from THE HINDU group of publications
Monday, Jun 10, 2002
Financial Daily from THE HINDU group of publications Monday, Jun 10, 2002 |
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Markets
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Commentary Columns - ADR Watch Mixed sentiment K.S. Badri Narayanan
THE trimming of sales forecast by semiconductor maker Intel Corp sent the US markets nervously down. In fact, the Dow Jones Industrial Average finished the week at its lowest close since November 12, at 9589.67 over the previous week close of 9925.25, a fall of 3.4 per cent. The tech-heavy Nasdaq shed five per cent to 1535.48 (1615.73). However, with the fear of war between India and Pakistan subsiding, domestic bourses did manage to finish in positive territory. The Bombay Stock Exchange Sensitive Index or Sensex closed at 3217.76 (3125.73) and the S&P CNX Nifty finished higher at 1048.80 (1028.20). It was mixed week for the Indian ADRs. While ADRs such as Dr. Reddy's Laboratories, ICICI Bank, MTNL, Satyam Computer and Silverline Technologies finished firm, Infosys, HDFC Bank, Wipro and VSNL closed on weak note. The tussle between the Government and the VSNL's new management - Tatas, seemed to have affected the VSNL counter in both the markets. While the ADR finished weak at $6.60 ($7.31), the domestic stock closed at Rs 159.25 (Rs 186.35). However, the counter now trades at a premium of 1.59 per cent compared to last weekend discount of 3.80 per cent. Market players seemed to have shifted their preference to MTNL. The ADR closed at $5.30 ($4.86) and trades at a reduced discount of 3.94 per cent (4.24 per cent). The good performance of Dr. Reddy's Lab for the financial year 2001-02 seemed to have lifted the counter marginally. The ADR closed at $20.17 ($19.75) and the stock at Rs 955.40 (Rs 948.40). For 2001-02, DRL posted a net profit of Rs 459.60 crore (Rs 144.50 crore) and a turnover of Rs 1,651.60 crore (Rs 1,001.60 crore). ICICI Bank continued to display firm trend. The ADR closed at $7.62 ($7.40) while the domestic equity finished at Rs 150.75 (Rs 139.45). However, the ADR now trades at a reduced premium of 23.90 per cent (30.13 per cent). While IT majors Infosys and Wipro edged down marginally, Satyam Computer and Silverline Technologies finished in positive territory with minor gains. However, there was not much deviation in their premiums. Rediff.com and Satyam Infoway also ended the week on negative note.
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