SKINDIA INDIAN GDR MONITOR
Volume VI No 29	Jul 16-Jul 22, 1999	23-Jul-99

Skindia GDR Index looses ground After a positive movement in the past three consecutive weeks, the GDR markets turned bearish this week pushing the Skindia GDR Index down by 61.46 points. On the other hand the domestic markets ended the week on a positive note, with the BSE Sensex gaining 48.86 points. During the week the premiums of the 63 Depository receipts on an average fell down to 4.89% on July 22, from 5.51% on July 15 and the spreads between the bid and ask of the 40 most actively traded Indian DRs widened to 7.37% on July 22, from 7.15% on July 15. Over the week the 63 DRs on an average gained 1.16% whereas the underlying shares lost 1.01%. In the industry wise breakup the DRs from the Cement sector were the highest gainers appreciating 20.45% followed by Cable and Pharma sectors gaining 7.77% and 6.31% respectively. The top losers were the IT sector depreciating 10.97% followed by Telecom and Aluminium sector each losing 10.16% and 7.15% respectively. In the underlying shares the Pharma sector was the top gainer, gaining 9.68% followed by Cable with 5.83% and Power with 3.77%. There were only two losers namely, the Steel and Fertiliser sectors shedding 15.15% and 7.46% respectively. Infosys: Infosys ADR displayed considerable volatility this week. After touching a high of US$121.87 on July 16, 1999 it crashed to US$76 on July 22, 1999. The domestic markets too behaved in the same manner, touching a high of Rs.5960.20 on July 20, 1999 and low of Rs.4646 on July 22, 1999. Whereas during the quarter ending June 30 1999, Infosys ADR and shares on an average recorded a gain of 38.78% and 28.18%. Infosys ADR was issued on March 11, at a price of US$34, a premium of 38.24% over the underlying share. The company now plans to acquire a US based marketing company in order to corner a greater share in the US market and expects to capture over 50% growth in dollar terms over the next two years.This doesn't seem a far cry as they have higher margins in these markets. As per the companies claim 80% of their current orders come from existing clients in the form of repeat orders.

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