Mumbai, July 11: A dilution of sanctions imposed by the US and the patch up between the BJP and AIADMK have together helped change the FII outlook on India. This has been clearly indicated by the 11.99 per cent rise in the Skindia GDR Index for the week ended July 9.The GDR Index closed at 727.59 points on July 9 against the previous week's close of 649.68 points. The BSE Sensex gained 151.25 points during the period, recording an increase of 4.76 per cent.
The Skindia GDR Index p/e ratio was ruling at 16.94 this week compared with 14.83 in the previous week. The GDR index premium was quoting at 21.13 per cent for the under review as against the previous week's premium of 12.35 per cent.
On an average, the 65 GDRs gained 4.72 per cent during the week. Of these 29 were gainers, 5 were losers while 31 remained unchanged.
GDRs in the auto sector were the biggest gainers during the week, rising by 13.34 per cent, followed by telecom and cement sector GDRs which gained 9.54 per cent and 6.67 per centrespectively. The fertiliser sector was a major loser both at the GDR and local markets.
Among the gainers, GDRs of JCT, BSES and Bajaj Auto recorded the maximum gain. JCT was up 33.33 per cent over its previous week's close, BSES gained 29.72 per cent and Bajaj Auto saw an increase of 28.28 per cent.
Among the losers, Bombay Dyeing recorded the sharpest fall at 12.50 per cent from its previous week's close. GDRs of CESC and Indo Gulf saw a fall of 11.11 per cent and 9.52 per cent, respectively.
GDRs were trading at a huge premium to their underlying shares traded on the local markets. GDRs of Oriental Hotels were trading at a premium of 270.35 per cent over their underlying shares on July 9. GDRs of Flex Industries quoted at a premium of 190.39 per cent while JK Corp was traded at a premium of 177.76 per cent.
As against this, Himachal Futuristic was quoting at a discount of 50.27 per cent to its underlying shares while GDRs of Usha Belton and Ashok Leyland were trading at discounts of 33.36 per centand 14.62 per cent, respectively.
According to a Skindia press release, the auto sector is showing signs of recovery after going through a bad phase in the first quarter of the current fiscal. Telco, which was a major loser during the first quarter, has recorded a marginal rise of 17.65 per cent at the start of the second quarter.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
