SKINDIA INDIAN GDR MONITOR
Volume VI No 43	Oct 22-Oct 28, 1999	29-Oct-99

Skindia GDR Index sheds 6.70% This week too the GDR as well as the domestic markets continued with their slide down . On the back of the disappointing quarterly results for a few blue chip companies coupled with less than expected results for IT and Pharma companies, FIIs and the local operators continued with their selling spree. Interestingly Skindia GDR Index after having come close to its 52 week high on Oct 8, 1999 has consistently been falling and has lost a massive 13.78% since then. This week the Skindia GDR Index & BSE sensex oscillated in an extremely wide band of 7.41% & 5.27% losing 60.86 points and 242.34 points respectively. During the week the average premiums of the 65 DRs rose up to 7.99% on Oct 28 from 5.13% on Oct 22 and the spreads between the 41 most actively traded DRs widened to 7.51% on Oct 28 from 7.41% on Oct 22. Over the week the 65 DRs on an average lost 3.05% and the underlying shares 6.43%. In DRs the steel sector continued to be the top gainer this week too, appreciating 16.23% followed by finance and textile sectors gaining 4.56% and 2.04% respectively. The top three losers were telecom sector depreciating 8.88%, aluminium sector 8.36% and hotel sector 8.22%. On the other hand in the underlying shares the only gainer was the steel sector gaining 9.70%. The losers were telecom , pharma and hotel sectors falling 13.38%, 9.72% and 9.44% respectively. Reliance Industries:On Oct 20th Reliance Industries reported 22% gain in its net profit for H1 of 1999-2000 to $257m vs $217m in the previous year. Buoyed by an increase of 5% in product selling prices and 13% in volumes, its sales rose 18% to $1989m from $1737m. For Q2 it recorded a jump of 27% in its net profit. Before the announcement of its results, Reliance share as well as its GDR experienced frenzied trading and its share touched a new 52 week- high of Rs. 256 whereas its GDR moved up by 9.07% to $14.02.And after the announcement of its better than expected results, the scrip touched a new 52-week high at Rs.261.75 and the GDR moved further to $14.25. But the surge forward did not sustain & the scrip tumbled in both the GDR as well as the domestic markets. Its GDR fell by 12% to $12.54 and share 7.66% to Rs.241.70 from their highs.

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