SKINDIA INDIAN GDR MONITOR
Volume VI No 15	Apr 09-Apr 15, 1999	16-Apr-99

Highest ever single day gain in the Skindia GDR Index On strong expectations of BJP government surviving the trust motion on Saturday Apr 17, the worries about the budget not being able to go through were put to rest, as a result the bulls returned to the capital markets with a vengeance and pushed the Skindia GDR Index to its highest ever rise in a single day. The Skindia GDR index shot up 77.65 points to 674.67 a gain of 13.01% by 1200 hrs GMT (4:30 IST) on Apr 16, over Thursday's close. The Skindia GDR Index had lost 38.99 points or 5.97% since the beginning of the current political crisis, is only 13.96 points below the post budget high of 688.63 on Mar 08.The top gainers were State Bank of India appreciating 18.10% to $9.18, Telco 16.54% to $3.88 and Reliance 15.85% to $7.13. As a result of political uncertainty the capital markets witnessed lackluster trading during the week. With no clear indications as to if the BJP-led coalition will be able to survive after AIADMK withdrew support to the government. The problem was further aggravated with the fact that nobody else also does not have enough numbers to form the government. As the markets remained weak, the Skindia GDR Index ended the week with a fall of 21.87 points and the BSE Sensex 181.05 points. The Indices moved in a band of 5.19% and 3.20% respectively. The turnover of the underlying shares fell by 22.52% to Rs 3182.55 cr, during the week from Rs 4107.70 cr in the previous week. On Wednesday Apr 14, 1999, when the domestic markets were closed due to a public holiday, the Skindia GDR Index moved up by 18.62 points or 3.14%, implying that despite the political problems India is still an attractive centre for investments. In the week the 63 GDRs on an average lost 1.16% while the shares shed 6.89%. As the fall in GDRs was lesser than the shares, the average premiums moved up to 13.22% on Apr 15 from 6.28% on Apr 08. In GDRs cement, aluminium and fertilser sectors were the only gainers, rising 4.53%, 3.86% and 1.72% respectively. Cable was the top loser falling 4.17% followed by steel and auto losing 3.61% and 3.21%. In shares, aluminium was the only gainer with a marginal rise of 0.07%. Here again, cable were the top loser with a fall of 14.48% followed by pharma shedding 10.17%.

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