SKINDIA INDIAN GDR MONITOR
Volume VI No 19	May 07-May 13, 1999	14-May-99

Capital Markets come round a full circle After helping the Skindia GDR Index touch 52-week high of 804.01on May 07, 1992 players in the GDR market now seem to be indifferent to the high swings in share prices resulting in contrarian movement in the Skindia GDR index and BSE Sensex. Therefore, after rising significantly for three consecutive weeks the GDR markets consolidated this week, but the bulls took over the domestic market pushing the BSE Sensex above the psychological mark of 4000. The Skindia GDR Index lost 34.79 points while the BSE Sensex gained 365.82 points in the week. During the week there was not much change in the average spreads of the 39 most actively traded depository receipts. It was 8.12% on May 13 as compared to 8.63% on May 06. As the Skindia GDR Index ended the week on the negative territory the average premiums of the 63 DRs declined to 4.89% on May 13 from 13.36% on May 06. After a week of consolidation the GDRs, again started to push upwards. After being down 5.40% or 43.25 points till May 12, the GDRs restarted their upward movement. On May 13, the GDRs closed 1.12% higher, while they moved up by 2.79% or 21.33 points in mid-day trade on May 14 over previous days close. May be 13 is a lucky number for GDRs. In the domestic markets the BSE Sensex crossed 4100 mark on May 14, 1999 for the first time after May 06, 1998 while the S & P CNX Nifty made 52-week high of 1173.55 on the same day. Over the week the 63 DRs on an average lost 4.34% whereas the underlying shares gained 10.03%. The current rise in the capital markets is not limited to certain sectors but is more wide spread. This is evident from the fact that this week in the industry segments diversified segment was among the top gainer in both, the GDRs and the shares, appreciating 9.36% and 19.70% respectively. The other top gainers in GDRs were fertiliser and cable sectors rising 9.72% and 6.84% respectively. The top losers were hotel, telecom and aluminium sectors falling 7.85%, 6.36% and 2.73%, respectively. In shares the top gainers were fertiliser and cement sectors, advancing 18.50% and 14.10%, while there were no losers. This week four of the seventeen Skindia GDR Index scrips touched 52-week highs. These are ITC to $ 34.00 on May 07, Ranbaxy Labs to $ 18.88 on May 11, L & T to $ 14.73 on May 13 and Reliance to $ 9.40 also on May 13.

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