MUMBAI, June 21: After a long time, foreign investors seem to have started focussing on Indian shares. While foreign institutional investors stepped up their operations in Indian markets, foreign investors were active in global depository receipt (GDR) market abroad where Indian shares are listed.

Even as the BSE sensex touched its 52-week high of 4,148.86 on June 18, the Skindia GDR Index was just 2.46 per cent below its 52-week high of 84.53 on June 19, 1996. The rise in Sensex was fuelled by FIIs. As a result, FII investments shot up in June with inflows of $ 105.50 milion in the first ten days compared to $ 203 million in May and $ 148.50 million in April.

For the third consecutive week, the Skindia GDR Index Premium broke the previous level to touch a high of 33.24 per cent. There is no wonder that 64 GDRs gained an average 1.19 per cent compared to 2.61 per cent in the underlying shares. During the week, stocks from the cement were in the limelight with their GDRs gaining an average 16.22 per cent and underlying shares 15.25 per cent.

The announcement that the board of Reliance Industries will meet on June 26 to consider a bonus issue, triggered off frenzied buying in both the international and domestic markets. The GDR and share prices of Reliance shot up to touch their 52-week highs of $ 23.13 and Rs 343 respectively.

``Greater trading interest by foreign fund managers in its GDR led to a decline in spreads between the bids and offers from 1.11 per cent (June 18) to 1.09 per cent by June 19,'' Skindia said. The turnover in the domestic market skyrocketed 103.60 per cent to Rs 297.69 crore. However, the focus of speculation will shift to how generous the Reliance bonus ratio will be.

Despite falling interest rates, SBI has managed to keep its margins intact and has posted a 59.87 per cent increase in its net profit to Rs 1329.30 crore ($ 370.90 million). The SBI board has recommended a dividend of Rs 4 per share, subject to RBI approval.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.