The Hindu Business Line : Infosys falls on fresh issue plans

A COMBINATION of reports - President George W. Bush's election, fall in global oil prices and better-than-expected US job numbers - fuelled rally in the US markets. According to Bloomberg data, the S&P 500 rose for a ninth straight day including Friday, its longest streak since June 1997. The benchmark and the Dow Jones Industrial Average climbed for an eighth day in nine.

Last week, the S&P 500 added 3.2 per cent, the DJ Average 3.6 per cent and the tech-focussed Nasdaq jumped 3.2 per cent

Piggybacking global advice, the domestic markets also gained strength despite hike in petroleum prices and increase in inflation numbers.

Among the ADRs, IT (Infosys, Wipro and Satyam Computer) and banking (HDFC Bank & ICICI Bank) continued to clamber fresh heights. Infosys, Wipro and HDFC Bank, in fact, have breached their year-high records last week.

After touching a 52-week high at $70.25, Infosys suffered sharply after the company announced that its board is meeting on Monday to consider a proposal to allow shareholders to convert more underlying equities into ADRs. It closed the week weak at $65.59 ($66.43).

However, the rest of them maintained the momentum to end the week on positive note.

Dr. Reddy's Lab finished higher at $17.32 ($16.58) after it announced that the USFDA has granted final approval for its Abbreviated New Drug Application for Citalopram hydrobromide tablets. The company is planning to commence the commercial marketing of this product immediately.

Tata Motors rose to $9.5 ($9.25) after it said its October sales rose 31 per cent. However, MTNL closed weak at $7.83 ($7.9) despite the announcement that it will buy equipment to add 20 lakh mobile phone users next year.

Likewise, Sify also ended weak despite saying that it has implemented the DomainKey authentication system in SifyMail to help prevent spamming and mail forgery.

But for Infosys, there were not much deviations on the premium/discount front. Infy's premium fell to 50 per cent from last week's 58 per cent.

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