Financial Daily from THE HINDU group of publications
Monday, Oct 03, 2005
Financial Daily from THE HINDU group of publications Monday, Oct 03, 2005 |
|
|
|
|
|
|
|
Markets
-
Stock Markets Columns - ADR Watch In the limelight K.S. Badri Narayanan
THE drop in global crude prices and better-than-expected earnings from companies such as PepsiCo Inc and Micron Technology Inc helped the US benchmarks to score handsome gains despite a report showing that consumer confidence had the biggest plunge in 15 years. The Dow Jones Industrial Average surged 1.4 per cent to 10,568.7 and the S&P 500 climbed 1.1 per cent to 1228.81 while the tech-focussed Nasdaq jumped 1.7 per cent 2151.69. The record-breaking run for the domestic benchmarks continued without any hitch last week; the BSE Sensex once again whizzed past the 8,700-mark for the first time in its history at 8,722.17 before ending the week at 8,634.48, a net rise 5.01 per cent. The NSE's S&P CNX Nifty soared five per cent at 2601.40. The Indian ADRs also performed well; the average return posted by the Indian ADRs was around 7.67 per cent against the average return of 4.48 per cent recorded by underlying equities. But the gains were also ably supported by positive flow news. For instance, Dr. Reddy's Lab announced that it has set up a separate company (with the help of ICICI Bank and Citigroup Inc) to develop new drugs at lower research costs and reduce the risk of failure. The drug major also announced that it has agreed to jointly develop a diabetes drug with Denmark's Rheoscience A/S. Infosys announced that it may revise this year's profit and sales forecasts higher as the rupee weakens against the dollar. The rupee has lost 1.2 per cent against the dollar since June 30. The company earns more than 60 per cent of its sales in the US, and it gains from a weak rupee. Satyam Computer said that the World Health Organization has chosen it to implement critical Global Management System (GSM). Meanwhile, RBI has restricted further foreign institutional investors' buying in ICICI Bank as they reached permissible limit. Despite this, the ADR touched its 52-week high at $28.33. Most of the ADRs saw their premium widening a bit from last week levels.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
