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Global Depository Receipts / Weekly Review

Auto sector gains 10 pc on news of 60 pc depreciation on new sales

The Indian Global Depository Receipts moved up further but the BSE Sensex decreased marginally during the week ended November 19.

After a positive movement in the past two consecutive weeks, the capital markets lost their direction this week. During the week, the Skindia GDR Index gained marginally by 3.47 points while the BSE Sensex ended with a loss of 44.70 points, moving in a band of 3.36 per cent and 1.96 per cent respectively.

The Skindia GDR Index recorded the weekly high and low of 595.37 points and 571.37 points respectively.

According to Skindia Finance, the average premium of the 60 GDRs moved up from 3.23 per cent on November 12 to 5.14 per cent on November 19 and average spreads of the 37 most actively traded GDRs fell from 9.10 per cent on November 12 to 8.34 per cent on November 19, implying a positive outlook towards the Indian paper.

The Skindia GDR Index increased by 0.59 per cent to 590.96 points on November 19 as compared with the previous close of 587.50 points. The Skindia GDR index P/E ratio also rose by 0.99 per cent to 15.98 from 15.82 and the Skindia GDR Index premium went up by 24.56 per cent to 19.13 per cent from 15.36 per cent.

Ashok Leyland, Bombay Dyeing and Crompton Greaves were the top gainers for the week which profited by $ 2.65 ($ 1.90), $ 1.50 ($ 1.18) and $ 0.95 ($ 0.75) respectively.

While the JCT Limited, DCW and SIV Industries were the top losers which lost by $ 0.75 ($ 1.00), $ 1.10 ($ 1.20) and $ 0.30 ($ 0.32) respectively.

During the week, the 60 GDRs on an average appreciated by 1.88 per cent and the shares by 0.35 per cent. In GDRs, auto sector was the leader with an average appreciation of 9.98 per cent, the other top gainers were pharma and telecom with a rise of 2.24 per cent and 2.00 per cent respectively.

The top losers were cement and aluminium sectors that fell by 2.46 per cent and 0.67 per cent. In shares, aluminium, cement and auto sectors were the top gainers which profited by 5.00 per cent, 4.94 per cent and 4.51 per cent respectively while the top losers were pharma 1.75 per cent, telecom 0.68 per cent and power 0.67 per cent.

The turnover of the shares reduced from Rs 29.75 billion in the previous week of Rs 23.92 billion in this week, a decline of 19.60 per cent.

A Skindia release added that, the news of finance ministry's decision to allow 60 per cent annual depreciation being allowed on the purchase of new commercial vehicles after the scrapping of vehicles which are more than 15 years old, the stocks of this sector started to attract the market players' attention.

As a result, during the week, the GDR of Ashok Leyland gained by 39.47 per cent and share price went up to 22.80 per cent.

The share turnover of this scrip showed a remarkable rise to Rs 109.8 million this week, a gain of 159.94 per cent. The stock of Telco also showed upward movement after the newsbreak but later plateaued after it was revealed that most of the sales of the company were credit sales and its sales for the month of October dropped by 38 per cent.

But finally its GDR ended with a rise of 2.18 per cent to $ 3.28 and the share 0.57 per cent to Rs 141.80 during the week.

UNI

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