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Global Depository Receipts / Weekly Review

Auto sector takes a U-turn downhill; Skindia Index down 61 points, 529.85

As the political uncertainty took the front seat at the Centre once again, and as exit polls indicated losses to the ruling Bharatiya Janata Party government in the states of Delhi and Rajasthan, the Indian global depositary receipt market declined moderately during the week ended November 26.

During the week, GDR index fell by 61.11 points. On an average, the 60 GDRs fell by 6.01 per cent and the shares by 7.48 per cent. The average premia of the 60 GDRs inched upwards to 5.97 per cent from 5.14 per cent in the previous week. The average spreads of the 37 most actively traded GDRs widened to 9.36 per cent from 8.14 per cent in the last week.

In GDRs, only the cable sector recorded positive returns of 1.23 per cent. After being the top gainer last week the auto sector took a U-turn to become the top loser this week with a fall of 13.71 per cent. The other top losers were aluminium and telecom sectors, declining by 12.90 per cent and 8.27 per cent respectively.

In shares, there were no gainers whereas the top losers were pharma, auto and aluminium scrips that depreciated by 17.88 per cent, 11.10 per cent and 8.50 per cent respectively.

The Skindia Finance Index dropped by 10.34 per cent to 529.85 points on November 26 as compared to last week's close of 590.96 points. The Skindia GDR index P/E ratio also declined by 8.74 per cent to 14.58 from 15.98 and the Skindia GDR index premiium slid by 30.17 per cent, to 13.36 per cent from 19.13 per cent.

There were two gainers, 39 losers while 19 remained unchanged, out of the total of 60 scrips. The top gainers for the week were Great Eastern Shipping ($ 2.78) and Finolex ($ 4.15) against the last week close of $ 2.68 and $ 4.05 respectively.

The top losers for the week were Flex Industries ($ 0.30), Telco ($ 2.74) and Hindalco ($ 11.38) against the last week close of $ 0.38, $ 3.28 and $ 13.36 respectively.

News on the telecom, patents, anti-dumping fronts could not energise the related sectors like steel.

The Ranbaxy GDR fell by 6.86 per cent during the week to $ 14.25 (cum bonus) while its premium moved slightly upwards to 23.63 per cent from 23.24 per cent.

The GDRs of Core Health and Dr Reddy's remained unchanged at $ 0.25 and $ 11.00 respectively. The GDRs of Ispat Industries was unchanged at $ 1.30 while that of SAIL fell by 2.50 per cent to $ 1.95 during the week.

The fall registered in their underlying shares was more than the GDRs, 2.59 per cent in the case of Ispat Inds and 5.50 per cent for SAIL. The discount in Ispat GDR slided to 2.19 per cent from 4.90 per cent and the premium for SAIL increased to 7.31 per cent from 3.80 per cent from the previous week.

UNI

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