SKINDIA INDIAN GDR MONITOR
Volume VI No 35	Aug 27-Sep 02, 1999	03-Sep-99

The markets continued to surge forward this week too till the pre-poll nervousness & the tighter trade margin rules brought the markets down. During the week the Skindia GDR Index & BSE sensex after having peaked at 951.39 and 4905.89 ended the week with a net loss of 13.51 and 116.63 points respectively . Both the Skindia GDR Index & BSE sensex moved in a wide band of 4.86% and 3.72% respectively. In the last six trading days beginning August 25 to Sep 01 FIIs have been net buyers (US$ 54.5 mil) in the domestic markets, whereas in the whole of Aug the FIIs have been net sellers (US$ 26.7 mil) as per data released by SEBI. During the week the average premiums of the 63 DRs zoomed up to 8.29% on Sep 02 from 4.58% on Aug 26, & the average spreads of the 40 most actively traded DRs narrowed to 6.71% on Sep 02 from 6.85% on Aug 26. Over the week the 63 DRs on an average marginally gained 0.67% whereas the underlying shares lost 3.32%. In DRs hotel sector was the top gainer appreciating 15.43% followed by textile & steel sectors gaining 6.35% and 5.04% respectively. The top loser was the telecom sector depreciating 11.22% followed by IT losing 5.18% & cement losing 3.04% On the other hand in the underlying shares the only two gainers were the hotel & cable sector rising 15.14% & 2.95% respectively. The top losers were steel sector losing 16.91%, telecom sector 11.93% & textile sector 7.46%. Hotel Industry: on recovery path This week the hotel industry was the front runner, appreciating 15.43% in GDRs and 15.14% in the underlying shares. During the week Indian hotels & Oriental Hotel touched their 52-week highs at US$ 13.07 and US$ 3.75 respectively. In the first quarter of the financial year 1999-2000 whereas the GDRs of hotel industry on an average marginally lost 0.07% the underlying shares gained 3.66% while in comparison to the corresponding period last year both the GDRs as well as the underlying shares fell 41.83% & 26.57% respectively. During the period July 01- till date the hotel sector flared up both in the domestic as well as the international markets gaining 44.94% & 46.99% against a rise of 7.15% in the Skindia GDR Index and 12.76% in the BSE sensex. In GDRs Indian Hotels was the star performer. It appreciated 58.58%, while E.I.Hotels & Oriental Hotels gained 39.89% and 36.36% respectively. The situation in the domestic market was more or less the same. Again the top gainer was Indian Hotels with 51.63%. followed by Oriental Hotel & E.I.Hotel gaining 49.80% and 39.53% respectively. Players bullish on the sector are confident that the continued revival of economy and return of a stable government will ensure the return of tourists in large numbers.

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.