SKINDIA INDIAN GDR MONITOR
Volume VI No 23	Jun 04-Jun 10, 1999	11-Jun-99

The investing community remains cautious On expectations that the sanctions imposed by USA and other countries will be lifted shortly, the bulls returned to the GDR markets and pushed the Skindia GDR Index up a modest by 8.39 points and the BSE Sensex up by 79.59 points. The rise could have been much steeper, but the investors are taking a cautious approach before the crucial visit of the Pakistan Foreign Minister, to India. However, the week saw foreign and domestic financial institutions resume buying in select cylicals. Inspite of continuing shelling on the border the volume of business was relatively high and the undertone was fairly steady. During the week the average premiums of the 63 depository receipts fell down to 3.91% on June 10 from 6.04% on June 03 whereas the spreads between the bid and ask of the 39 most actively traded DRs widened to 9.25% on June 10 from 8.99% on June 03. This week GDRs of Ashok Leyland touched 52-week high of $4.70 on June 09, L & T at $ 14.98 and Mah & Mah at $ 6.55 on June 10. ICICI - the silent mover Earlier it were the IT and pharma stocks and then came the turn of the cyclicals. One scrip which, silently caught the fancy of investors is ICICI. ICICI GDR recorded a gain of 57.89% to $9.75 in the period from April 01 to June 10 and its share 61.28% to Rs 72.90 compared to a rise of 17.54% in the Skindia GDR Index and 10.04% in the BSE Sensex for the same period. In the first quarter of calendar 1999 the stock had declined by 7.14% in the GDR market and 4.55% in the domestic against an advance of 9.56% in the Skindia GDR and 22.21% in the BSE Sensex. The daily turnover of the share also moved up to an average of Rs 5.89 cr in the April-June period from a daily average of Rs 3.59 cr in the first quarter. The price difference between the GDR and share has been pretty consistent. The GDR in the Q1 traded at an average premium of 19.40% while it is 19.60% for the April - June period. The graph below gives the premium of ICICI GDR over its underlying share for the period May 03 - June 10, 1999

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.