However, the average spreads have come down from 66.41 per cent in the previous week to 65.84 per cent during the week ended September 17.

Similarly, during the week, 65 GDRs, on an average, appreciated by 3.34 per cent while the underlying stocks registered an appreciation of less than 1.5 per cent.

Interestingly, GDRs of the auto sector, which had been languishing in need of fresh support, recovered by 10.9 per cent. According to market pundits, recovery in the auto sector GDRs indicates an improvement in the market sentiment.

"Auto sector is the barometer of the economy. The price appreciation in the auto GDRs is a clear reflection of the recoveryin the economy," a fund manager said.

Among the auto GDRs, Telco and Mahindra & Mahindra appreciated by over 14.52 per cent and 14.29 per cent respectively. The Telco GDR closed at $3.55 while the Mahindra GDR closed at $4.00.

Hotel and telecom sector GDRs also contributed to the sharp recovery in the GDR markets. The hotel sector GDRs appreciated by 8.79 per cent while those of the telecom sector rose by 8.05 per cent. The Skindia GDR price earning ratio also jumped by 3.96 per cent to close at 15.56 points.

Among the top losers was the ICICI GDR, which slumped by 1.93 per cent to $10.15. A Skindia Finance study on the textiles sector brings to light the deteriorating condition of the stocks in the GDR and domestic markets.

During the period April 1 to September 17, GDRs of the textiles industry lost 29.09 per cent against a loss of 32.02 per cent in the Skindia GDR Index. The top losers were the GDRs of Bombay Dyeing, which nosedived by 50 per cent to $1.25, Arvind Mills fell by 38.75 per cent to$1.15 and Raymond fell by 38.75 to a low of $2.45. However, the GDR of Sanghi Poly remained unchanged at $1.

Meanwhile, in the domestic markets, the textile sector stocks lost 38.37 per cent compared with a loss of 21.37 per cent in the 30-share BSE Sensex for the same period. The Bombay Dyeing stock was battered down to a low of Rs 45.65, registering a net loss of 57.85 per cent.