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Skindia GDR Index posts highest ever weekly rise, up 28 pc to 800.77 points; telecom, hotel, auto sectors up; textiles, steel dip

The Indian global depository receipts rose smartly by 28.81 per cent to 800.77 points on the Skindia GDR Index on heavy buying support from foreign institutional investors, recording the highest ever rise during the week ended on May 6.

On the support of investments by the FIIs, the Skindia GDR Index recorded highest ever rise in a week of 179.10 points. It touched the 52-week high with this rise.

During the week, the BSE Sensex also moved up by 323.17 points. The FIIs in their hunt for attractive valuations have begun looking for Indian banking stock. Aggressive buying by foreign funds has made the Skindia GDR Index and the BSE Sensex oscillate in an extremely wide band of 21.39 per cent and 9.72 per cent respectively.

During the week, FIIs have made net purchases worth Rs 3.90 billion. Owing to increased activity in the bourses, the average spread of the 39 most actively traded DRs has narrowed to 8.63 per cent on May 6 from 9.54 per cent on April 29, whereas the average premia moved down to 13.36 per cent on May 6 from 14.38 per cent on April 29.

According to a Skindia Finance statement, during the week, the 63 DRs on an average gained by 28.81 per cent and the shares gained by 9.72 per cent.

In the industry-wise break-up, the DRs from the telecom sector were the highest gainers, appreciating by 37.49 per cent, followed by the hotel and auto sector that gained by 21.62 per cent and 20.17 per cent respectively.

There were only two losers: the textile and steel sectors which dipped by 4.70 per cent and 4.57 per cent respectively.

In the underlying shares too, the top gainer was the telecom sector with 18.65 per cent, followed by the IT sector with 16.31 per cent. There were no losers in shares.

There were 36 gainers, 15 losers and 12 steady DRs against the 12 gainers, 25 losers and 26 steady DRs last week.

The top gainers in GDRs were Indian Hotels, VSNL and L&T, while top losers were Core Healthcare, Jain Irrigation and Crompton Greaves. In the underlying shares, the top gainers were State Bank of India, VSNL and L&T while the top losers were DCW and Flex Industries.

In the aluminium sector, after hitting a five-year low, the prices of aluminium have started looking up. Aluminium closed at US$ 1360.00 a tonne on the London Metal Exchange on May 6, 1999.

The rise, observers said, has genesis in people who are not afraid to take fresh long positions. Taking the cue, the GDR and share prices of the scrips in this sector moved up. The main beneficiary has been Hindalco: its GDR appreciated by 44.06 per cent since April 1999, against a rise of 22.26 per cent in the Skindia GDR Index.

Indian Aluminium GDR moved up by 17.36 per cent in the domestic markets. The share price of Hindalco appreciated by 24.02 per cent and that of Indian Aluminium 27.04 per cent, compared to a fall of 1.02 per cent in the BSE Sensex in the same period.

Hindalco reported a rise of 14.31 per cent in its net profit for the financial year 1998-99 to Rs 5.67 billion while its sales moved up by 19.89 per cent to Rs 17.66 billion. On May 6, when its results were out, the GDR of Hindalco moved up by 17.18 per cent to US $ 17.90 and its share by 2.72 per cent to Rs 586.

UNI

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