SKINDIA INDIAN GDR MONITOR
Volume VI No 31	Jul 30-Aug 05, 1999	06-Aug-99

Skindia GDR Index moves in a narrow range: This week both the GDR and the domestic markets moved in a narrow range of 2.93% and 3.34%. respectively. The markets started on a weak note due to the less than expected quarterly results of some of the major commodity companies, but later staged a smart recovery on Wednesday as FIIs and domestic funds turned buyers in selective IT, pharma and cement stocks. The Skindia GDR Index marginally gained 3.47 points while the BSE sensex lost 2.23 points. During the week the average premiums of the 63 depository receipts fell down to 5.58% on Aug 05 from 6.15% on July 29. The average spreads between the bid and ask of the 40 most actively traded DRs narrowed to 7.33% on Aug 05 from 7.59% on July 29. This week 3 DRs touched 52-week high with Ashok Leyland touching a high of $8.10, Dr.Reddy's $21.50 and Ranbaxy $21.83. Pentafour Software touched its all time high of $31.88. During the week the 63 depository receipts lost 1.28% and the underlying shares lost 1.01%. Cement sector was the top gainer in the DRs with a gain of 6.71% followed by aluminium and auto sector, gaining 4.84% and 4.38% respectively. The top loser was the steel sector losing 12.11% followed by hotel and telecom sector declining 3.04% and 2.98%. On the other hand in the underlying shares the top gainer was the cement sector appreciating 12.86% followed by pharma and auto rising 9.83% and 6.33% respectively. The top loser was the cable sector depreciating 25.53% followed by steel and fertiliser losing 11.12% and 5.33% respectively. Pharma Sector Pharma sector seems to be creating ripples in the market. During the first half of the calender year 1999 pharma GDRs on an average gained 41.39% and the underlying shares gained 59.47% while the Skindia GDR Index and BSE sensex gained 32% and 35.30% respectively. The major gain being in the first quarter. In H1 1999 Ranbaxy Labs and Dr.Reddy's gained 80.87% and 79.55% respectively whereas Core Healthcare gained 16.67%. Wockhardt could not cope up and lost 11.54%. During the period July 01- till date, the Pharma sector on an average gained 15.02% against a rise of 6.75% in Skindia GDR Index. This time the gain being contributed by Ranbaxy 38.18%, Wockhardt 13.04% and Dr.Reddy's 8.86%. Core Healthcare remaining unchanged. During the same period the underlying shares appreciated 25.46% while the BSE sensex gained 11.02% . Ranbaxy was the top gainer with 55.36% followed by Wockhardt and Dr.Reddy's with 38.72% and 22.17%, whereas Core Health lost 14.41% . Ranbaxy and Dr.Reddy's touched their 52 week-high of Rs 1024.80 and Rs1014 respectively on Thursday.

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