SKINDIA INDIAN GDR MONITOR
Volume VI No 02	Jan 08-Jan 14, 1999	15-Jan-99

Brazil crisis takes the markets for a Samba. After the bull run previous week the markets a downturn for a correction but the fall continued due to the lack of support from the foreign funds on the back of Brazilian currency crises. Overall the markets ended the week on a steady note with the Skindia GDR Index losing 28.73 points and BSE Sensex 6.81 points. As the fall registered by the underlying shares was less compared to the GDRs the average premiums of the 60 GDRs came down to 2.13% on Jan 14 from 3.25% on Jan 07. The spreads of the 37 actively traded GDRs marginally narrowed down to 8.56% on Jan 14 from 8.69% on Jan 07. The Skindia GDR Index and BSE Sensex moved in a broad band of 9.79% and 4.28% respectively, in the week. During the week, the 60 GDRs on an average lost marginally 0.49%, whereas the shares gained 0.87%. In the industry wise break up the GDRs from cable sector were the highest gainers appreciating 4.19% followed by auto with 3.49% and steel with 2.78%. The top losers were telecom, cement and power losing 13.33%, 5.83% and 3.01% in that order. In shares, the top gainers were cable auto and hotel sectors, gaining 8.86%, 6.30% and 6.02% while the top losers were cement, pharma and telecom losing 9.96%, 5.05% and 3.77% respectively. Finolex Cab. GDR touched 52-week high of $5.70 on Jan 13, while Dr. Reddy's at $12.25 is quoting at 52-week high since Jan 07. On Jan 14, 1999 Telco's sales figures for Dec. 1998 were out. It recorded a sales of 5,269 vehicles for its medium and heavy class, a rise of 77.17% over Dec. 1999, while sales of 3,663 nos. in its light commercial class an improvement of 1.19% year on year. On the news of higher sales the GDR and the share of Telco started to move up. Telco stocks got a further impetus when the Maharashtra State government granted sales tax concession on the sales of Indica, the mini car form Telco. As a result the GDR of Telco gained 14.61% to $5.10 and its share climbed 7.99% to Rs 224.30. Other highlight of the week were IPCL. On the rumours that Indian government was planning to privatise IPCL and Reliance was making open market purchases in the scrip, the GDR gained 26.19% to $ 5.30 over the week and its share 22.40% to Rs 74.05.

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.