SKINDIA INDIAN GDR MONITOR
Volume V No 49	Dec 11-Dec 17, 1998	18-Dec-98

Desert fox bombs capital markets As the US launched air strikes on Iraq under the code name desert fox, it was shelling for the Indian capital markets which, came tumbling down. None other financial markets, even the currency markets were affected by this event, in fact the markets world over ended in the positive territory. After the disappointment over the IRA bill, the markets took a down turn and further, on the last day of the week the shelling by United States of America over Iraq took the Skindia GDR Index down by 45.37 points and the BSE Sensex by 115.16 points by the end of the week. In the week the average premium of the 60 GDRs fell to 7.12% on Dec 17 from 7.21% on Dec 10, and the average spreads of the 37 most actively traded GDRs widened to 9.47% on Dec 17 from 9.13% on Dec 10. Overall, during the week, the 60 GDRs on an average lost 3.04% and the shares 3.12%. In GDRs pharma and cement sectors were the only gainers with a gain of 2.24% and 1.83%, the top losers were telecom, hotel and aluminium sectors dropping 9.02%, 8.37% and 7.20%. The steel sector remained unchanged. In shares the gainers were cable and cement appreciating 3.31% and 1.08%, the top losers were aluminium, hotel and pharma sectors declining 8.60%, 5.06% and 4.69%. Pharma Sector in need of a tonic The pharma sector has not been keeping very well. In the period from Oct 01, 1998 the GDRs of pharma sector on average lost 6.22% with an average daily loss of 0.06%. The performance of the Skindia GDR index in the same period has been even worse which, depreciated 8.91% with an average daily loss of 0.15%. Ranbaxy is the major loser declining 9.87% to $ 7.83 (ex-bonus) followed by Core Health losing 7.69% to $ 0.30. Dr Reddy's declined 4.35% to $ 11.00 and Wockhardt 2.99% to $ 6.50. In shares the average decline was 5.84% with a daily average loss of 0.04% as compared to a loss of 7.67% in the BSE Sensex making a daily average loss of 0.13%. In shares, the major loser was Wockhardt losing 13.93% to Rs 255.10. Dr Reddy's lost 9.72% to Rs 445.75, Core Health 9.70% to Rs 13.00 and Ranbaxy 9.41% to Rs 259.20 (ex-bonus).

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.