MUMBAI, JUNE 27: It was once again a see-saw movement for Indian shares listed abroad. Global depository receipts (GDRs) of Indian companies listed on overseas bourses initially fell but recovered later in the bygone week, thanks to a host of developments like downgrading and introduction of buy-back of shares.The Skindia GDR 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 the GDR index 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% to 3078.51.
The Skindia GDR Index premium rose to 10.29 per centfrom 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%.
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 on June 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, 65 GDRs on an average fell by 2.12 per cent and shares lost 2.36 per cent.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
