SKINDIA INDIAN GDR MONITOR
Volume VI No 14	Apr 01-Apr 08, 1999	09-Apr-99

Jaya strikes back Ms Jayalalitha, president of the AIADMK the second largest party in the BJP lead 18 - party coalition government, recalled her two nominees from the government and once again, threatened to withdraw support, thus sending shock waves into the capital markets and the BSE Sensex fell by 166.90 on Monday, Apr 05. As the GDR markets were closed on that day for Easter, the GDR markets reacted to the news the following day, the Skindia GDR Index registering a fall of 17.12 points or 2.61%. On Thursday Apr 08, the Prime Minister decided to accept and forward the resignation of the two ministers, to the President of India, as result the Skindia GDR fell a further 17.10 points or 2.69% and the BSE Sensex fell 48.63 points. During the week there was not much of a change in the average spreads of the 39 most actively traded depository receipts. It was 9.29% on Apr 08 as compared to 9.24% on Mar 31. The average premiums of the 63 DRs zoomed up to 6.28% on Apr 08 from 3.01% on Mar 31. This rise in the premium was largely due to the 0.54% depreciation in the value of Indian Rupee against US Dollar. During the week, the 63 DRs declined 3.21% and the shares 5.84%. In GDRs auto sector was the major loser falling 8.52% followed by steel which fell 4.89% and telecom falling 4.14%. Cable, power and IT sectors were the only gainers rising 3.41% 2.85% and 0.48% respectively. In shares, cement with a decline of 9.57% was the top loser followed by pharma and steel, losing 8.75% and 8.39% respectively. Power sector, on the back of notification by the ministry of delinking of rate of return from the bank rate, was the only gainer in shares with an appreciation of 0.21%. GDR Premium for 1998-99 GDR premiums, which are a function of change in prices of GDRs, underlying shares and the change in the value of Indian Rupee against the US Dollar, on an average, for the period of financial year 1998-99, were at the 1.37% for the 61 GDRs. Orient Hotel had the highest average premium of 42.22%, NEPC India had the second highest of 35.39% and MTNL with a premium of 27.10% was the third. Usha Beltron was at the bottom with an average premium of -22.90% followed by Hind Develop and Garden Silk with the average premium of -21.48% and -15.48% respectively.

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