SKINDIA INDIAN GDR MONITOR Volume VI No 13 Mar 26-Mar 31, 1999 1-April-99 Financial year 1998-99 ends on a firm note The financial markets ended the financial year 1998-99 on a positive note. The Skindia GDR Index gained 33.79 points during the week and the BSE Sensex moved up by 57.27 points. The markets got a major push on the back of institutional buying as they wanted to report better NAVs for Mar 31, 1999 an important NAV reporting date. As a result of this, the average premium of the 64 depositary receipts shot up to 3.01% on Mar 31, from 0.64% on Mar 25. Active buying interest could also be noticed from the fact that the spreads between the bid and ask of the 38 actively traded DRs narrowed down to 9.24% on Mar 31 from 19.99% on Mar 25. During the week, the 64 GDRs on an average gained 1.04% while the shares depreciated 1.33%. Financial Year 1998-99 - A review The fiscal 1998-99 was dominated by two main events, India conducting nuclear tests and the fear of second South East Asian crises. These events had a major impact on the capital markets. In 1998-99 the Skindia GDR Index lost 25.95% while the BSE Sensex lost only 5.78%. The Skindia GDR Index touched 52-week high 952.29 on April 9, 1998 and the 52-week low of 481.61 on Aug 18, 1998. The 52-week High Low for the BSE Sensex were 4280.96 on April 21, 1998 and 2764.16 on Oct 21, 1998. On an average the GDRs lost 23.67% in the FY 1998-99 and the shares 19.40%. Finolex Cables, Dr. Reddy's and Usha Beltron were top gainers in both the GDRs and the shares, Finolex Cables gained 90.40% to $8.43, Dr. Reddy's 67.44% to $18.00 and Usha Beltron 50.00% to $1.50 in the GDRs and in shares 91.85% to Rs 377.75, 102.59% to Rs 862.00 and 71.84% to Rs 88.50 respectively. Cable and pharma sector were the only gainers in the year with a rise of 70.20% and 25.83% in GDRs and 81.85% and 49.89% in the shares respectively. Steel was the top loser in both GDRs and shares with a loss of 46.54% and 44.47%. Hotel with a fall of 45.585 was the other major loser in the GDRs and textiles with 40.18% in the shares. The stocks headed downward in the first half, with GDRs on an average losing 31.50% and the shares 30.56% as compared to a loss of 33.42% in the Skindia GDR Index and 21.85% in the BSE Sensex. During the second half the GDRs on an average gained 12.85% and the shares 11.77%. The Skindia GDR Index gained 13.39% and the BSE Sensex 20.55% 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.