Mumbai, June 27: The Skindia GDR Index gained by 1.23 per cent to close at 638.28 during the week ended June 25, over its previous week's close of 630.51. The tumultuous happenings of the week, with the news of Moody's downgrade of India's sovereign rating from investment grade to speculative grade saw the two indices--BSE Sensex and GDR--spiralling down. Both the indices, however, gained during the end of the week with the government's announcement on buy-back of shares, employee share options and incentives to FIIs.The Skindia GDR Index lost 9.32 per cent to 599.46 in two days--June 19 and 20--while at the same time the BSE Sensex fell by 6.49 per cent to 3078.51. The Skindia GDR Index premium rose to 10.29 per cent from the previous week's premium of 5.28 per cent. Between June 18 and June 25, the BSE Sensex fell from 3,208.54 to 3,292.33 registering a loss of 2.55 per cent.
The Skindia GDR Index price to earnings multiple was at 15.66 for the week ended June 25 compared to a multiple of 14.78 as onJune 18. The top gainers of the week in the GDR market were ITC, Indo Gulf and VSNL, while the top losers of the week were Gujarat Ambuja, Indian Hotels and Videocon International.
Although, the Skindia GDR Index gained during the week, the 65 GDRs on an average fell by 2.12 per cent and shares lost 2.36 per cent. Among the industries, the GDRs of telecom, aluminium and pharma were the only gainers appreciating by 6.05 per cent, 3.84 per cent and 2.31 per cent. GDRs from the cement sector were top losers, depreciating 10.23 per cent followed by steel and hotel declining 6.25 per cent and 5.08 per cent.
In the underlying shares, cable, power and fertiliser were the top gainers, appreciating by 14.92 per cent, 6.11 per cent and 1.57 per cent. Whereas, shares from steel, telecom and cement were the top losers, depreciating by 12.13 per cent, 10.53 per cent and 10.14 per cent.
The total turnover of 61 companies fell by 27.17 per cent to Rs 1,809.17 crore from the previous week's turnover of Rs 2484.09crore.
The announcement of Indian Hotels' results saw its GDR fall by 4.61 per cent to $ 7.25, while its underlying share declined by 5.89 per cent to Rs 371.75. When EIH declared its results, the GDR gained 2.80 per cent to $ 5.35, while the underlying share gained to Rs 236.50.
On the declaration of results by Tata Electric companies, its GDR remained unchanged to $290, while the underlying share fell by 2.64 per cent to Rs 83.38. Indo Rama had incurred a Rs 87-crore loss for the financial year ended March 1998 on announcement of which the GDR remained the same at $4, while its underlying share fell by 5.52 per cent to Rs 8.55.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
