The negative reactions to the poor performance displayed by certain leading business houses of India, has trickled down to the GDR markets. Amidst a lacklustre trade, the GDR indices have witnessed a marginal downslide reflecting the `wait and watch' attitude adopted by the market makers.

Reflecting the sea-change in the sentiments of the local as well as the GDR market makers the Skindia GDR index recorded a net loss of 1.14 points or 1.61 per cent to close at 71.01 points against its previous week's close of 72.15 points registered on May 2.

The DSP Merrill Lynch index also recorded a loss of 1.30 points or 1.41 per cent to close at 92.33 points on May 8.

"The downslide in the GDR markets has been in line with the local markets," said Monica Mansukhani of Skindia Finance. "The dismal corporate performance along with the hanging sword on the final breakthrough of the Financial bill has left the market makers in a rather confused state," she added.

The week ended May 8, saw 20 GDR's remain unchanged with only 6 gainers of the 63 GDR's offered in the Global markets.

"The slide in the GDR indices has been attributed once again to the selling pressure witnessed at the Aditya Birla group GDRs," said a research analyst of a Foreign broking outfit.

Among the top losers for the week was Century Textiles, the GDR price crashed to touch a low of $ 52 on May 8, down by 38.46 per cent against the previous close of 72 recorded on May 2.

Hindalco was down 2.36 per cent at $ 31.75 against the previous week's close of $ 32.50.Bajaj Auto GDR was also down by 5.22 per cent at $ 31.75 against $ 33.50 recorded on May 2.

Among the top gainers was ICICI which registered a gain of 9.92 per cent at $ 11.38. "The improved results in ICICI has reflected on the positive move of the GDR and the underlying share which has shot up by 5 per cent to touch a high of Rs 66," said an insitutional dealer. During the week ended May 8, Century Textiles has been quoted at a discount of 10.24 per cent at $ 52, SIEL at a discount of 8.36 per cent at $ 1.25 and Raymond Woolen at $ 4.25 was quoted at a discount of 5.19 per cent. The GDR's which were quoted at a premium to their underlying share price were Videocon International (79.40 per cent), Ballarpur Industries ( 60.72 per cent) and Crompton Greaves (54.59 per cent).

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.