• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

K.S. Badri Narayanan

THANKS to buying spree in select sectors such as financial and technology the US markets ended week on positive note. The US Government's economy data further bolstered the market sentiment; according to the Government report the consumer purchases climbed 3.7 per cent for the 12-month period ended September. (Consumer purchases account for almost two-thirds of US economy).

The stocks have rallied strongly ever since they had touched their five-year lowest level on October 9. The Dow Jones Industrial Average has recorded its biggest two-month gain since 1987. The index jumped 5.9 per cent in November after rising 11 per cent in October. The S&P 500 climbed 5.7 per cent this month and the Nasdaq Composite Index 11 per cent.

The Dow Jones index gained one per cent last week to 8896.09 against the previous week close of 8804.84, its eighth straight weekly gain, the longest such streak since 1998. The S&P 500 inched up 0.6 per cent to 936.31 (930.59) and the tech-focussed Nasdaq gained 0.7 per cent to 1478.78 (1468.74).

Taking a cue from the US markets, Indian investors also continued their confidence. The Bombay Stock Exchange (BSE) Sensex finished firm at 3228.82 (3141.61) and the National Stock Exchange's S&P CNX Nifty at 1050.15 (1020.15).

Moving on to ADRs performance, the strong show by US markets seemed to have helped the ADRs consolidate. Counters such as Dr. Reddy's Lab, Wipro, Silverline Technologies and VSNL scored handsome gains while others were maintained at the previous week level.

Dr. Reddy's announcement that it will exceed a $60 million target for the US generic drug sales this year because of revenue from its version of the antidepressant drug Prozac seemed to have invoked a positive sentiment for the counter as it ended higher at $15.85 ($15.32).

Infosys, which touched its new 52-week high during last week, finished marginally lower at $83.25 ($84.20) despite that the company is foraying to Thailand market for its `Finacle', a banking product. Another report that Infosys is considering to issue additional ADRs to improve liquidity at the Nasdaq market also ushered in some activity in the counter. However, the company's top brass denied that Infosys has not taken any decision towards ADR issue.

Silverline jumped sharply to $.92 ($.70) on reports that the company has placed GDRs on Luxembourg

Stock Exchange. But no further details were available on that count.

The premium/discount of the ADR to the underlying stock did not witness much change.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Income funds top in asset base

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line