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Skindia GDR Index up 10.13 points to 607.15; steel, aluminium gain; cement, IT, fertilisers dip

The global depository receipts and the Bombay Stock Exchange Sensitive Index recovered moderately during the week ending April 22 after Parliament passed the Union Budget for 1999-2000 without any debate on Thursday.

Despite this, punters closed out positions, gripped by fear of an impending election, as no political party has been able to put an alternative government in place.

Volumes on the bourses shrank as most market players decided to await a clearer political picture.

Only the much-awaited passage of the Budget pushed the Skindia GDR Index up 10.13 points to 607.15 and the BSE Sensex by 41.62 points.

During the week, there was not much change in the average spreads of the 39 most actively traded GDRs. It was 8.63 per cent on April 15 as compared to 8.72 per cent on April 22. Although the Skindia GDR Index ended the week on a positive note, the average premia of the 63 depository receipts fell to 12.60 per cent on April 22, from 13.22 per cent on April 15.

Skindia Finance said in a statement that there were 20 gainers, 25 losers and 18 unchanged against the 11 gainers, 26 losers and 26 unchanged of last week.

In the GDRs, the top gainers were Hindustan Development, Steel Authority of India Limited and Hindalco Industries, which appreciated by US $0.15, $2.48 and $14.75, respectively, while the top losers were EID Parry, Indian Cements and DCW, which declined by $1.88, $0.75 and $0.88, respectively.

The 63 GDRs gained 1.70 per cent and the shares 1.54 per cent during the week.

In the industry-wise break-up, the GDRs from the steel sector were the highest gainers, appreciating by 14.29 per cent, followed by aluminium with 13.52 per cent. The top losers were cement, information technology, and fertilisers, depreciating by 7.34, 4.34, and 4.22 per cent, respectively.

In the underlying shares, the top gainers were the aluminium, cable and pharmaceuticals sectors, gaining 26,59, 7.75 and 7.24 per cent, respectively. The top losers were hotels, telecommunications and IT, shedding 3.46, 2.33 and 2.80 per cent, respectively.

Core Healthcare's GDR at $50 is quoting at a 52-week high since March 31. The GDR was issued on March 11 at a price of $34.00, a premium of 38.24 per cent over the underlying shares. On the issue date, the ADS touched a high of US $50.00 and a low of $37.33, which have been the highest and lowest prices since.

The trading volumes in the domestic markets have more than doubled from an average of Rs194 million (one month before the issue) to Rs429.2 million.

UNI

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