SKINDIA INDIAN GDR MONITOR
Volume V No 48	Dec 04-Dec 10, 1998	11-Dec-98

On expectations of the passage of Insurance Regulatory Authority and Patents Bill, in the parliament, with in principle support to both the bills by the Congress, main opposition party, the sentiment turned positive this week. As a result the Skindia GDR Index gained 34.91 points and the BSE Sensex 175.14 points over the week. With the GDR markets appreciating more than six and half percent, the overall average premiums of the 60 GDRs moved up from 5.90% on Dec 03 to 7.21% on Dec 10, and the spreads of the 37 most actively traded GDRs narrowed down from 10.11% on Dec 03 to 9.13% on Dec 10. With the Fortune magazine identifying Telco as one of the top ten investment opportunities in Asia, its GDR went up by $0.50 or 18.53% during the week. Over the week, the 60 GDRs on an average gained 4.76% and the shares 3.91%. In the GDRs telecom sector appreciated the highest, rising 9.25% followed by auto with a rise of 9.18% and pharma with 8.44%. Steel sector was the only loser falling 2.00%. In shares, the top gainers were pharma, auto and cement industries with an appreciation of 16.93%, 8.625 and 5.40% respectively. the top losers were steel and fertiliser with a decline of 2.415 and 2.16% in that order. MTNL - Its GDR is one year old MTNL was the last GDR issued by any Indian company. The GDR issued at a price of $ 11.96 started to trade on Dec 04, 1997 at a price of $ 13.25. Currently trading at $ 11.50, is 3.76% below its issue price and 13.28% below the listing price. The GDR touched the 52-week low of $ 7.75 on June 22, 1998 and the 52-week high of $19.13 on April 09, 1998. The GDR on an average traded at a premium of 23.66% to the underlying share since the issue. A further study revealed that the GDR witnessed a volatility of 3.76% as compared to 2.91% for the share. The GDR had a correlation of 0.63 and a beta of 1.07 with the Skindia GDR Index and with its share 0.32 and 0.72 respectively.

DISCLAIMER : Factual material is obtained from sources believed to be reliable and SkindiaFinance is not responsible for any errors and omissions contained herein. Any recommendation contained in this report may not be suitable for all issuers.