SKINDIA INDIAN GDR MONITOR Volume VI No 49 Dec 03-Dec 09, 1999 10-Dec-99 Vibrant Markets - Skindia GDR Index gains 8.45% The GDR markets started the week on a vibrant note and following the smooth passage of Insurance bill, it just took off. Contrary to the expectations, the year end compulsions and much feared Y2k did 't seem to have any impact on the markets. On the very first day of the week the Skindia GDR Index touched its new 52 week high, and without a break continued to surge forward making new highs for the next two days. It finally settled at 1100.68 on Dec 07 with a gain of 11.5% in just 3 days, although the major rally was witnessed on Dec 06 when the Skindia GDR Index gained a whooping 6.15%. On Dec 08 came the anticipated correction and the Skindia GDR Index fell by 2.78%, although some of the losses were wiped off on Dec 09 when the markets regained some lost ground. Apart from Skindia GDR Index, GDRs of Infosys, Pentafour Software, VSNL and Grasim also had a tremendous run this week, touching new highs. Over the week the Skindia GDR Index & BSE sensex oscillated in a wide band of 9.08% & 3.19% and Skindia GDR Index gained 84.14points & the BSE sensex gained 147.49 points. The average spreads of the 41 most actively traded DRs moved up to 8.42% on Dec 09 from 7.81% on Dec 02 and the average premiums of the 66 DRs widended to 9.42% on Dec 09 from 7.08% on Dec 02. In the week the 66 depository receipts gained 3.29% and the shares gained 1.43%. IT sector was the top gainer in the DRs with a rise of 38.93% followed by telecom & fertiliser gaining 15.16% and 6.64% respectively. The top losers were power, cement and the aluminium sector each falling 3.25% 2.19% and 2.11% respectively. On the other hand in the underlying shares the top gainer was the cable sector gaining 16.48% followed by IT& power sector gaining 13.15% and 13.07% respectively. The top losers were aluminium fertilser & steel sectors shedding 4.77%, 3.52% and 2.90% respectively. Pentafour Software: Yet another information technology GDR seems to be in demand. It is Pentafour Software's turn this time. Pentafour Software which had not been participating in the latest IT rally has now caught on. After hovering at around US $25 - 30 till the end of november it jumped to $39.25 by Dec 01 and has continuously been surging forward. On Dec 02 its GDR started being coated at $20.13, its ex bonus price and has gained as much as 72.05% till date in just 6 trading days while the Skindia GDR Index gained 8.45% over the same period. On the other hand it underlying shares gained only 32.67% over the same period. Pentafour Software is being re rated by the market as the company has decided to separate its multimedia business from the software development business which would improve its earning potential. 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.