MUMBAI, June 10: The Asian market crisis left a negative impact on the Indian papers traded at the London markets. Reflecting the nervous mood of the market makers the Skindia GDR index touched an all time low of 646.99 points during the intra-day's session to register a net fall of 7.29 per cent over Tuesday's close. Over 60 per cent of the GDRs comprising the Skindia index recorded new lows today. Among the worst hit were Videocon International and Arvind Mills which traded at $ 2.35 and $ 1.15 respectively to record losses to the tune of 21.67 per cent and 14.29 per cent.Moving in line with the GDRs, the underlying shares of the above mentioned also took a severe beating, with Videocon being traded at Rs 110 a fall of over 25 per cent in three trading sessions and Arvind Mills trading at a new low of Rs 48.
Rumours that the Chinese currency could be devalued by over 30 per cent sent panic signal among the market makers who feel that the crisis at the south-east Asian countries is bound to take a tollon India as well.
"The budget has been flat, with little or no reforms for the capital markets, and the targets set for the corporate is also of a long term nature, hence the immediate reaction would be either to empty our kitties at the given prices and enter at a later stage or wait and watch," explained a GDR arbitrageur. Among the pivotals, the GDR of Reliance was quoted at $ 6.88 to register a net loss of 9.47 per cent, to trade at a discount of over 10 per cent to its closing on the local bourses.
However, the GDRs of SBI and ITC which dipped by 7.66 per cent and 5.56 per cent traded at a premium to its underlying shares.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
