The Hindu Business Line : Bad week for Indian counters

IT was one of the smart recoveries at the US markets, particularly for the Dow Jones Industrial Average index, after the markets were reeling under selling pressure with as many corporates' unethical means came to the open.

A survey that consumers were more confident than previously estimated fuelled a strong recovery. During last week, the Dow Jones Industrial climbed 3.1 per cent, snapping a two-week losing streak. Earlier in the week, the Dow registered its 52-week low at 7532.65.

However, for the tech-heavy Nasdaq, it was another bad week. For the ninth week in 10 weeks, Nasdaq finished the week at 1262.12, after registering a new 52-week low at 1192.42.

In India, both Mumbai and National stock exchanges were also under pressure during the week gone by as worries over monsoon failure continued to haunt market participants.

The BSE Sensex finished weak at 3024.35 (3230.27) and the NSE's S&P CNX Nifty at 973.5 (1035.90).

Among the ADRs, only HDFC Bank finished the week on a slightly better note at $13.85 ($13.18).

Infosys finished flat at $49.49 ($49.3564), after moving in a narrow band of $51.5-$48.

For others, it was a negative swing all the way.

Satyam, which announced a drop of 10.72 per cent in its first-quarter net profit at Rs 108.45 crore, closed at $9.10 ($9.86). The company also announced a near zero-growth outlook in revenues and profits for the forthcoming quarter.

However, these announcements did not affect the sentiment wildly for the counter, as it managed to stay around $9

levels. In the domestic markets, Satyam finished at Rs 221.5 (Rs 237.10).

Other tech majors — Wirpo and Silverline Technologies — also closed the week in negative territory.

The decision of Nova Nordisk to suspend the ongoing clinical trails on the anti-diabetic molecule of Dr. Reddy's Laboratories seemed to have affected the sentiment for the counter heavily.

In fact, the Dr Reddy's ADR recorded its new 52-week low at $16 during the week. The counter closed the week a shade better at $16.68 ($21.35).

At the BSE, the stock closed at Rs 831.95 (Rs 1,014.35). The ADR now trades at a discount of 2.39 per cent to its underlying domestic stock compared to a premium of 2.58 per cent a weak ago.

Both the telecom counters — MTNL and VSNL — witnessed a severe drubbing to close at $5.28 ($6.05) and $5.33 ($6.25) respectively.

However, the MTNL stock finished firm at Rs 151.35 (Rs 134.85) though VSNL ended weak at Rs 135.75 (Rs 148.20).

Send this article to Friends by E-Mail

Stories in this Section
Funds catching up with mid-cap stocks

CVC refers Reliance-UTI case to advisory board

`Support seen at current levels'

Bad week for Indian counters