MUMBAI, July 25: News of the political impasse by Jayalalitha over the Cauvery water dispute, and a possible downgrade of the yen by Moody's triggered a fall in both the markets -- the BSE and GDRs. The week ended July 23 saw the Skindia GDR Index fall by 12.50 per cent to close at 653.90 over its previous weeks close of 747.32.The strengthening of the bourses in earlier weeks owing to the US Senate diluting sanctions against India and renewed interest by foreign funds, got diluted by the political upheavals.
On the last day of the previous session, the Moody's decision to review Japan's credit rating for a possible downgrade brought the markets crashing, with the BSE shedding 261.25 points and the GDR losing 93.42 points.
The 65 GDRs lost 6.02 per cent, while the underlying shares fell by 8.08 per cent. The pharma sector in the GDR witnessed a marginal 0.19 per cent rise. The auto sector was the major loser with losses of 16.31 per cent in the GDRs and 14.08 per cent on the BSE.
Telecom was theother major loser of the week in the GDR market losing 10.04 per cent, followed by hotels which lost 9.96 per cent. In the underlying shares market, the major losers were steel which lost 12.90 per cent and textiles which lost 9.23 per cent.
On July 23, 20 of the 65 GDRs were quoting at their 52-week low with bluechips like Telco, Reliance, Mahindra & Mahindra and Wockhardt, all at their 52-week low.
The Skindia GDR Index price to earnings multiple also lost 11.71 per cent to 15.15 per cent from its previous weeks' 17.16 per cent. The Skindia GDR Index premium also lost 32.34 per cent to 12.75 per cent from its previous weeks' 18.84 per cent. The top gainer in the GDR market was Dr Reddy's Lab, gaining 7.69 per cent to trade at $14 over its previous weeks' $13. The top losers in the GDR market were Telco, which lost 23.75 per cent, Reliance, which lost 18.83 per cent, and Mahindra & Mahindra which lost 18.63 per cent.
In the underlying shares, the top gainers were DCW and Tube Investment, while the toploser in the underlying shares were Telco, Videocon International and Himachal Futuristic. The scrips trading at a high premium in the GDR market on July 13 were Oriental Hotels at 264.20 per cent, Flex Industries at 237.22 per cent and JK Corp at 235.45 per cent.
The Skindia GDR fallen by 24.34 per cent in the last two months, while the BSE Sensex lost 17.18 per cent. While the Skindia GDR Index lost 30.28 per cent in the last three months, the BSE Sensex lost 20.33 per cent during the same period.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page
