SKINDIA INDIAN GDR MONITOR
Volume VI No 30	Jul 23-Jul 29, 1999	30-Jul-99

Corporate Results weaken sentiment. In the week the markets took a down turn on the back of less than expected first quarter results and high contango ( badla) charges. Inspite of substantial net buying by FII the domestic bourses remained subdued. During the week the Skindia GDR Index fell 33.26 points and the BSE sensex 125.36 points moving in a band of 3.82% and 2.95% respectively. The average premiums moved up 6.15% on July 29 from 4.89% on July 22. The average spreads between the bid and ask of the 40 most actively traded DRs widened to 7.59% on July 29 from 7.37% on July 22. Over the week the 63 DRs on an average lost 2.22% and the shares 3.40%. In GDRs the only two gainers were the IT sector gaining 6.51% and textile sector appreciating 2.08%. The top loser was the cement sector depreciating 7.84% followed by aluminium and fertiliser sector losing 7.51% and 6.10% respectively. On the other hand in the underlying shares the top gainer was IT sector gaining 5.51% followed by the cement sector with 1.93%.The top loser was the hotel sector declining 8.47% followed by power and textiles each losing 7.26% and 6.73% respectively. Hotel Sector a slow down in growth In the calender year 1999 hotel stocks have been unable to attract many investors . In the first half of the year the GDRs of this industry on an average moved down 12.82% and the shares by 6.53%. Although in comparison to the first quarter the performance in the second quarter was better. In Q2 the GDRs fell marginally by 0.10% as compared to 11.93% in Q1. On the other hand the underlying shares gained 5.87% in Q2 in comparison to a fall of 10.16% in the Q1. During the week Indian Hotels and E.I.Hotels announced their April to June results, both showing a fall in their respective net profits. Indian Hotel net profit fell by 7.73% to Rs 222.0 mln in comparison to 240.6 mln last year and E.I.Hotels by 33.52% to 129.7 mln from Rs 195.1 mln in the previous year . Sales of Indian hotels as well as E I Hotel also fell from Rs.1.32 bln to 1.20 bln and 1.02 bln to 0.96 bln respectively

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