Financial Daily from THE HINDU group of publications
Monday, Aug 23, 2004
Financial Daily from THE HINDU group of publications Monday, Aug 23, 2004 |
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Markets
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Stock Markets Columns - ADR Watch Tech counters price, premium gain K.S. Badri Narayanan
THE US and Indian stock markets moved in different directions with the former making handsome gains for the second straight week despite oil price concerns. While the Dow Jones Industrial average gained 2.9 per cent, the S&P-500 improved 3.1 per cent and the tech-focussed Nasdaq jumped 4.6 per cent. Worries over the oil price rise and the inflation numbers, however, affected the sentiment for the domestic bourses. Among the ADRs, tech counters witnessed a strong rally thanks to the positive sentiment at Nasdaq. Beside this, Infosys announced the bagging of an order worth $35 million from State Bank of India. Infosys closed higher at $49.36, a sharp jump from the previous week close of $45.47, Wipro at $17 ($15.10) and Satyam Computer finished higher at $20.29 ($18.05). Concern over profit margin seemed to have affected Dr. Reddy's Laboratories which slumped to its year low level of $15.25 during the week and closed at $15.46 ($15.8). While reports that MTNL will be out of the key BSE Sensex from September 27 seemed to have affected the domestic counter, the ADR finished firm at $6.66 ($6.35) due to the positive sentiment prevailing there. Videsh Sanchar Nigam Ltd rose to $7.43 ($7.10) after the long-distance phone company said it may get as much as $169 million from the sale of its 5.4-per cent stake in Intelsat Ltd after the satellite services company agreed to be sold for $3 billion. Banking counters ICICI Bank and HDFC Bank closed higher at $12.23 ($12.19) and $27.69 ($27.35) respectively. The strong showing by the ADRs also helped them to widen their premiums to the underlying equities; Infosys ADR premium widened to 47.6 per cent (42.25 per cent), Wipro to 39.41 per cent (30.91 per cent) and Satyam to 39.3 per cent (25.03 per cent).
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