SKINDIA INDIAN GDR MONITOR
Volume VI No 03	Jan 15-Jan 21, 1999	22-Jan-99

A week of bulls and bears During the week both the bulls and the bears participated taking turns. The markets moved up on FI support but were bucked down on the back of poor corporate results. As a result the Skindia GDR Index fell marginal 0.46 points and the BSE Sensex gained 37.65 points in the week, moving in a band of 2.64% and 3.81%, respectively. Although the Skindia GDR Index ended the week on the negative territory, the average premium of the 60 GDRs moved up to 4.31% on Jan 21, from 2.13% on Jan 14, and the average spreads of the 37 most actively traded GDRs narrowed to 8.23% on Jan 21, from 8.56% on Jan 14, indicating that the overall sentiment in the GDR markets remains firm. On an average the 60 GDRs lost 0.46% during the week and the shares 2.29%. The major loser was the fertiliser sector losing 7.16% followed by aluminium and steel shedding 6.24% and 2.11%. The top gainers were pharma, cement and cable sectors appreciating 4.00%, 3.19% and 2.27% respectively. In shares the top loser was aluminium declining 11.47% followed by textile and fertiliser sectors, depreciating 7.33% and 7.08%. Pharma and cement sectors were the only gainers in the shares moving 10.33% and 3.02%. Corporate results As the third quarter results of the corporate started to pour in the markets took a beating as the investors were disappointed by these results. The important results which had a bearing on the market, this week were those of Reliance Inds., ITC and Indian Alum. Reliance and ITC results were close to the expectations of the markets and hence these were already discounted for. Reliance Inds. recorded a fall in its Q3 by 7.59% to Rs 402 cr year on year (Y-o-Y). Its GDR remained unchanged at $6.48 while its share inched up marginally by 0.67% to Rs 135.70 on the day of announcement. The fall has been attributed to lower global demand. ITC declared a rise of 16.09% to Rs 135.70 cr in its net profits in quarter three Y-o-Y. Since these were as per the expectations, the ITC GDR fell by 5.26% to $ 22.50 and the share 3.18% to Rs 807.50, after the announcement of results. The lower profits were due to the fall in the volumes of micro cigarette segment and declining exports of tobacco leaves. Due to fall in the international prices of aluminium the Indal's Q3 profits declined by 22.22% to Rs 9.80 cr as compared to previous year. Its GDR depreciated by 2.38% to $ 2.05 and the share 6.28% to Rs 76.10 on the announcement of results.

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.