SKINDIA INDIAN GDR MONITOR
Volume VI No 18	Apr 30-May 06, 1999	07-May-99

Skindia GDR Index records highest ever rise in a week On the back of investments by the FIIs the Skindia GDR Index recorded highest ever rise in a week of 179.10 points. It touched 52 week high with this rise. The BSE Sensex also moved up by 323.17 points in the week. FIIs in their hunt for attractive valuations have begun looking for Indian banking stock and therefore aggressive buying by foreign funds has made the Skindia GDR Index and the BSE Sensex oscillate in an extremely wide band of 21.39% and 9.72% respectively. During the week the FIIs have made a net purchases worth Rs 390.20 cr, as reported. Due to increase activity in the bourses the average spread of the 39 most actively traded DRs has narrowed to 8.63% on May 06 from 9.54% on April 29 whereas the average premiums moved down to 13.36% on May 06 from 14.38% on April 29. During the week the 63 DRs on an average gained 28.81% and the shares gained 9.72% In the industry wise break up the DRs from telecom sector was the highest gainer appreciating 37.49% followed by hotel and auto sector gaining 21.62% and 20.17% respectively. There were only two losers namely, the textile and steel sectors shedding 4.70% and 4.57%. In the underlying shares too the top gainer was the telecom sector with 18.65% followed by IT with 16.31%. There were no losers at all in shares. Aluminium - getting its luster back After hitting five year low, the prices of aluminium have started looking up. Aluminium closed at $ 1360.00 a tonne on London Metal Exchange on May 06, 1999. The rise is because people are not afraid to take fresh long positions. Taking the cue the GDR and share price of the scrips in this sector moved up. The main beneficiary of this rise has been Hindalco, its GDR appreciating 44.06% since April 1999, against a rise of 22.26% in the Skindia GDR Index. Indian Alum GDR moved up by 17.86%. In the domestic markets share price of Hindalco appreciated by 24.02% and that of Indian Alum 27.04% compared to a fall of 1.02% in the BSE Sensex in the same period. Hindalco reported a rise of 14.31% in its net profit for the financial year 1998-99 to Rs 567 cr, while its sales moved up by 19.89% to Rs 1766.00 cr. On May 06, the day of announcement of results the GDR of Hindalco moved up by 17.18% to $ 17.90 and its share by 2.72% to Rs 586.00

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