The Hindu Business Line : Infosys, the lone gainer

Amidst West Asia concerns coupled with disappointing financial performance by corporate majors, the US markets ended the week strongly lower. On the other hand, domestic markets, braving the Mumbai blasts, ended the week with smart gains, thanks to a stellar performance by Infosys Technologies.

Despite strong gains posted by Indian stocks, most ADRs aligned to the US market sentiment and closed in the negative zone.

The divergent trend was so strong that only Infosys gained among the ADRs while five underlying equities of listed ADRs finished firm on the BSE.

Even in the case of Infosys, while the stock surged 6.3 per cent to Rs 1650.75 (Rs 1551.95) (ex-bonus price), the ADR gained only 2.6 per cent to end at $78.49 ($76.44). Infosys posted a strong net profit of Rs 805 crore for the quarter ended June 30, 2006 compared to Rs 523 crore for the quarter ended June 30, 2005. The company also revised its full year guidance upwards.

The worst loser was HDFC Bank; it announced a 30 per cent rise in net profit for the first quarter. While its ADR declined by 6.3 per cent to $49.65 ($53), the underlying stock declined even further by seven per cent at Rs 728.55 (Rs 784.8).

The biggest divergence was witnessed in Wipro followed by Satyam Computer. While the former's ADR declined by four per cent, the latter fell by 2.9 per cent; on the other hand, their underlying stocks finished with a gain of 4.4 per cent and 4.3 per cent respectively.

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