SKINDIA INDIAN GDR MONITOR
Volume VI No 11	Mar 12-Mar 18, 1999	19-Mar-99

Skindia GDR Index gains as the correction nears completion The correction continued from the previous week towards the end of this week. As the corrections comes closer to completion the Skindia GDR Index ends the week with a gain of 12.65 points while the BSE Sensex closed the week with a marginal fall of 0.80 points. During the week the premiums of the 63 depositary receipts (DRs) on an average fell down to 1.16% on Mar 18 from 5.32% on Mar 11, and the spreads between the bid and ask, of the 39 most actively traded Indian DRs widened to 9.40% on Mar 18 from 8.71% on Mar 11. In the week the 63 DRs on an average gained two tenths of a percentage and the shares 4.54%. Aluminium sector was the top gainer in the DRs with a rise of 11.91% followed by IT and pharma appreciating 9.86% and 7.87% respectively. The top losers were fertiliser, auto and textile sectors depreciating 5.54%, 4.08% and 3.93% respectively. In shares the major gainers were steel, cables and pharma with a rise of 19.32%, 16.77% and 9.12%, and the top losers were auto, hotel and telecom falling 3.08%, 3.03% and 1.37% respectively. Infosys Tech. continues to attract the investors. After listing the previous week, its ADR has fallen 7.55% by Mar 18, taking the cue, its share on the BSE also has fallen 6.09%. The fall in both the ADR and the share is more due to correction after an overwhelming success of its ADR issue. At a price of $43.25 it still is quoting at a premium of 22.07% to the underlying share. After falling 10.26% in the first three days of its listing the ADR gained 2.67% in the next two days. The ADR listing has had a very good effect on the turnover of its share. During the period Jan 1998 to Feb 1999, its average daily turnover has been roughly around Rs 15 cr on the BSE, but in Mar 1999 it has clocked a daily average of Rs 43.45 cr on the BSE. Besides IT the other sector which has been making news is the pharma sector. On an average its GDRs have gained 56.78% in the year 1999 and the shares have moved up 65.47%. Ranbaxy is the star performer with its GDR rising 81.42% to $16.60 in this year. Its GDR touched 52 week high of $16.64 on Mar 18 The share gained 123.56% to Rs 597.35, in the same period.

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.