SKINDIA INDIAN GDR MONITOR
Volume VI No 01	Dec-24,1998 Jan-07, 1999	08-Jan-99

The capital markets started the new year with a bang, as a result the Skindia GDR Index the Skindia GDR Index moved up by 82.42 points and the BSE Sensex 336.59 points in the fortnight. The rise was on the expectations, that foreign institutional investors will be allocating higher funds to India for the year 1999, the bulls came charging in to the bourses. During the fortnight, the 60 GDRs on an average gained 10.34% and the shares 14.68%. As the rise in the shares was higher than the GDRs the average premiums of the 60 GDRs fell to 3.25% on Jan 07, 1999 from 7.95% on Dec 23, 1998. Due to the increased activity on the bourses the average spreads of the 37 most actively traded GDRs narrowed to 8.69% on Jan 07, 1999 from 9.37% on Dec 23, 1998. No sector was a loser either in GDRs or shares. The top gainer in the GDRs was auto appreciating 18.86% followed by cables and telecom which gained 15.16% and 12.45% respectively. In shares, pharma was the top gainer rising 22.24% followed by steel which rose 20.71%. The annual review of GDRs - II The year 1998 was dominated by the fears of second South-East Asian crises saw the Skindia GDR Index touch all time low of 481.61 on Aug 18, 1998. During the year the Skindia GDR Index lost 30.06%, while the 60 GDRs on an average fell 23.39%.The BSE Sensex depreciated 17.86% and the shares 19.35%. The fall in the indices was mush higher in the first half of the year. In the first half, the Skindia GDR Index fell by 37.13%, whereas the fall in the second half was only 0.58%. On the other hand, the BSE Sensex fell 12.02% in the H1 1998 and 5.42% in the H2 1998. Finolex Inds. and Videocon Intl. were the top gainers in both the GDRs and the shares, registering a rise of 84.16% and 82.14% in GDRs and 65.18% and 55.46% in shares. The other top gainer in the GDRs was Jain Irrig. rising 50.00%, and Dr Reddy's was the third from top in shares with an appreciation of 47.01%. The top losers in the GDRs were NEPC, Mah & Mah and Indo Rama, depreciating 65.00%, 63.93% and 61.54% respectively. In shares the top losers were Flex Inds. (64.12%), Sanghi Ploy (61.07%) and Arvind Mills (58.55%). In Industries, the GDRs from the cable were the top gainers rising 0.22% followed by pharma with 0.05% and fertiliser and telecom each with 0.01%. The top losers were hotel (0.22%) and steel (0.18%). In shares cable with 0.20%, pharma with 0.15% and aluminium with 0.02% were the top gainers while cement, hotel and steel sectors were the major losers each falling 0.12%.

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.