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ENS ECONOMIC BUREAU
MUMBAI, Sept 26: Global Depository Receipts (GDRs) of Indian companies listed staged a rally on overseas bourses last week. Riding on the back of positive sentiments created by the clearance of the proposal of buyback of shares by Law Ministry, resumption of official talks between the Indian and Pakistan Prime Ministers and expectations of US Fed rate cut, Skindia GDR index moved up by 59.02 points during the week.
The index crossed the 700 mark after more than two months (July 20, 1998) The BSE Sensex also moved up 104 points during the week closing above 3200 mark almost after two months (July 31, 1998). The Skindia GDR Index moved in a band of 7.52 per cent and the Sensex 4.69 per cent. While the average premium remained at 28.70 per cent, the spreads from 65.84 per cent to 64.49 per cent.
Overall, 65 GDRs appreciated 3.48 5 and the shares gained 3%. No sector was a loser in the GDRs while, cement with a loss of 3.04 % was the only loser.GDRs from aluminium sector as the major gainer rising 8.89 percent followed by steel and telecom gaining 7.95 per cent and 6.89 per cent.
GDRs from cable sector remained unchanged. In shares, the top gainers were steel gaining 13.25 per cent and hotel 7.30 per cent 7.30%
The power sector has provided marginal returns of 0.96 per cent in the period July 1 to September 24 against a rise of 7.33 per cent in the Skindia GDR Index. The returns were wiped out due to the Tata Electric GDR, while declined 34.48 per cent to $ 190, with a daily retuns of 0.55 per cent and GDR of CESC rose 5.56 per cent to $ 0.95 with average daily returns of 0.33 per cnet.CESC touched its 52 week low of $ 0.60 on August 13. The average spreads during the period to 39.78 per cent from 26.67 per cent in first quarter of the financial year 1998. The average premiums fell to 13.25 per cent from 18.12 per cent in the corresponding periods.
In the domestic markets there was a marked performance in the sector, giving returns of 11.56 per cent against -0.16 per cent in the BSE sensex for the periodJuly 1 to September 24. In shares, CESC was the star performer which appreciated 26.03 per cent to Rs 36.80. BSES gained 8.85 per cent to Rs 166 while Tata Electric lost a marginal 0.20 per cent to Rs 86.60.
Meanwhile, the road shows for the Concor GDR issue are slated to begin from October 10. The government is expected to announce the price and exact launch date later.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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