Aug 17: After rallying for three consecutive weeks, the activity in the GDR market slowed down, with the Skindia GDR index moving in a lacklustre manner to finally close at 82.42 points on August 13, recording a net loss of 2.07 per cent over its previous week's close of 84.16 points. ``The Skindia GDR index may be in for a phase of correction after gaining 7.02 per cent by registering a new 52 week high of 86.57 points on August 6,'' commented a research analyst at Skindia Finance.

During the week ended August 13, the 64 GDRs fell by an average 1.88 per cent as compared to 2.76 per cent in the underlying shares. The Skindia GDR index price earning ratio dropped by 0.28 per cent to close at 21.16 points on August 13, and the premium index further dipped by 3 per cent to close at 17.44 per cent. Despite the weak undertone at the GDR markets, the representative GDRs of Raymond Woolen ($5.50), ICICI ($18.00) and Gujarat Ambuja ($11.00) rose sharply to register gains of 10 per cent, 9.09 per cent and 7.32 per cent respectively.

However, GDRs of Sanghi Poly, Ashok Leyland and E I Hotels have registered a loss of 14.29 per cent ($1.50), 13.33 per cent ($6.50) and 12.12 per cent ($14.50) respectively.

VSNL has outperformed its underlying share since its GDR issue on March 24. The GDR gained 20.24 per cent to $16.75 as against 12.23 per cent to 82.42 points in the Skindia GDR index.

It touched a high of $21.25 on June 25, a gain of 52.55 per cent over its issue price and is quoting at an average premium of 24.03 per cent. The domestic share has, however, lagged behind. It gained 11.65 per cent to Rs 1,100 as compared to 17.16 per cent gain to 4,370.13 in the BSE sensex during the same period. Its turnover in the domestic market has dropped from an average Rs 2.59 crore (six month prior to the GDR issue) to Rs 2.11 crore (post GDR issue).

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.