SKINDIA INDIAN GDR MONITOR
Volume VI No 07	Feb 12-Feb 18, 1999	19-Feb-99

Upward leap that didn't matter The market remained undecided due to the upward pressures of the upcoming budget anticipations and the downward pressure of political uncertainity. The foriegn institutional investors continued to lie low awaiting the outcomes of the forthcoming union budget. The Skindia GDR index gained just 2.29 points over the week while the BSE sensex gained 37.65 points moving in a band of 2.55% and 1.09% respectively.Although the Skindia GDR index ended the week on the positive territory the average premiums of the 61 GDRs fell down to 4.26% on Feb 18, from 9.15% on Feb 11and the average spreads of the 38 most actively traded GDRs narrowed to 9.05% on Feb 18 from 9.05% on Feb 11 indicating that the overall sentiment in the GDR markets remains firm. On an average the 61 GDRs gained marginally 0.38% during the week and the shares 1.14%. In the industry wise break up the GDRs from the cable sector were the highest gainers appreciating 13.25% followed by pharma and steel with 5.40% and 3.32% respectively. The top losers were hotel, aluminium and textiles depreciating 8.46% 5.39% and 4.65% respectively. .In underlying shares too, the cable sector was the top gainer gaining 24.47% followed by steel and pharma with 16% and 8.83% respectively and the top losers maintained the same sequence as GDRs sectors shedding 5.64% 3.84% and 2.65% respectively. This week saw two GDRs touching the 52 week highs with Finolex Cables GDR touching a high of $6.97 on Feb 18, while Dr.Reddy's reaching $14 as on feb 18. Eyes on the road and hands upon the wheel Keep your seat belts fastened, we are on rough roads says the auto industry. The forth quater of 1998 saw the auto GDR on an average gained 23.99% while the Skindia GDR index gained 3.49%. Telco and Ashok Leyland GDRs were positive 29.87% and 81.71% respectively while Mahindra & Mahindra and Bajaj Auto were negative 4.94% and 10.69% respectively during forth quarter 1998. This grim situation brightened in the first one and a half months of 1999 as only Bajaj auto GDRs were negative the rest three managed to stay positive though Ashok Leyland showed no change. The auto industry average for underlying shares was 15.24% gain as compared to the sensex which moved negative 1.51% in the last quater of 1998. The first one and a half months of 1999 saw the industry averages marginally rise to 17.71% while the sensex showed a positive gain of 9.51%.

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