SKINDIA INDIAN GDR MONITOR
Volume VI No 36	Sep 03-Sep 09, 1999	10-Sep-99

This week both the GDR and the domestic markets moved in a narrow range of 2.57% and 2.60% respectively. Uneasiness seems to have crept into the markets after the elections began. Several funds including the FIIs are preferring to keep away from active trading till the elections are concluded and the outcome is declared. Limited buying by foreign funds in the domestic market is making the short term players nervous. But the undercurrent still continues to be positive due to the sustained economic recovery. As a result the Skindia GDR Index gained 25.19 points and the BSE sensex 34.86 points. During the week the average premiums of the 63 depository receipts moved up to 9.19% on Sep 09 from 8.29% on Sep 02 and the spreads between the 40 most actively traded DRs widened to 7.80% on Sep 09 from 6.71% on Sep 02. Over the week the 63 DRs on an average gained 2.53% and the underlying shares 1.91%. In the DRs the top gainer was the IT sector gaining 9.67% followed by telecom sector rising 7.06%. The only three losers were textile, auto & hotel sector depreciating 1.74%, 1.59% and 1.15% respectively. On the other hand in the underlying shares the top gainer was the IT sector gaining 9.59% followed by fertiliser sector rising 4.34%. The top losers were hotel power and auto sectors losing 4.18%, 1.67% 1.57% respectively. Textile stocks change colours. In Q3 of the calender year 1999 textile GDRs have generated substantial trading interest. Interestingly although in Q1 textile GDRs were laggards and on an average lost 1.95% , in Q2 they turned positive on an average gaining 1.63%.But in Q3 they just took off gaining on an average 33.45% outperforming the Skindia GDR Index which gained 13.78%. In Q3 out of the eight GDR companies of the textile industry JCT ltd toped the list gaining 110.53% followed by Sanghi Poly 75%, Bombay Dyeing 47.83%, Garden Silk 38.89%, SIV Ind 20% and Indo Rama 5.26%. Actually since September 01 JCT Ltd and Garden Silk have been trading at their 52-week highs at $2.00 and $1.25 respectively. Arvind Mills and Raymond woolen GDRs were the only two losers depreciating 18.46% and 11.46% respectively. In the underlying shares too the trend has been the same. While in Q1 they on an average lost 5.31%, they turned positive in Q2 gaining on an average 10.4% and in Q3 they gained 24.44% . Here too in Q3 they outperformed the BSE sensex which gained 14.96%. JCT Ltd again toped the list gaining 76% followed by Bombay Dyeing 47.78% Garden Silk 36.57%, Sanghi Poly 28.21%, SIV Ind 13.62% and Raymond Woolen 8.40%. The two losers Arvind Mills and Indo Rama lost 10.49% and 4.58% respectively.

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