Financial Daily from THE HINDU group of publications
Monday, May 16, 2005
Financial Daily from THE HINDU group of publications Monday, May 16, 2005 |
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Markets
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Stock Markets Columns - ADR Watch Infotech counters end weak K.S. Badri Narayanan
LED by metal stocks, as commodity prices weakened, the US securities suffered. The S&P 500 dwindled 1.5 per cent to 1154.05 last week and the Dow Jones Industrial Average slumped two per cent to 10,140.12. According to Bloomberg data, both indices dropped for the first week since April 15. The Nasdaq, however, gained marginally 0.5 per cent to 1976.78. Back home, it was a listless week. Amid range-bound movement, the BSE Sensex gained close to one per cent, while the NSE's S&P CNX Nifty inched up 0.5 per cent at 1988.30. Except Tata Motors and Sify, all the other ADRs finished on a weak note. The strong rupee, which had hit a six-year high during last week, seemed to have affected the sentiment for infotech counters. Infosys closed the week at $60.31 against the previous week close of $62.6 and Wipro $18.67 ($19.21). Apart from the strong rupee, Infy appeared to have suffered on account of sponsored secondary ADR offer also, which would enhance its ADR float on the Nasdaq market. Infosys ADR offer, which is currently on up to May 19, is sponsoring 1.6 crore ADRs (represented by 1.6 crore equity shares). Satyam Computer, which concluded its sponsored secondary offering of 1.30 crore ADSs, representing 2.60 crore equity shares on May 3, has fixed its price at $21.50 per ADS. The counter closed on the NYSE at $22.14 ($22.98), well above the offer price. Tata Motors closed higher at $9.96 (9.69) despite the announcement that its sales in April dipped because of unavailability of some critical parts. Internet counters Sify and Rediff.com moved in a divergent manner - while the former gained, the latter declined marginally. Rediff.com is scheduled to announce its financial performance on May 18. HDFC Bank and ICICI Bank also declined at $41.8 ($43.13) and $19.09 ($19.45) respectively. On premium front, Infosys and Satyam saw a decline at 29 per cent (34 per cent) and 13.5 per cent (20.7 per cent) respectively. Others did not see much deviation.
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