The Hindu Business Line : Price, premium dip for Indian counters

It was the worst week for the US markets since the start of 2007 as equities tumbled on the back of concerns that mortgage defaults may rise. As a result, the S&P 500 and Nasdaq slid 0.7 per cent, while the Dow dropped 0.6 per cent. According to Bloomberg, the S&P 500 posted its worst weekly decline since the week ended December 22.

The Indian bourses, on the other hand, maintained the momentum with benchmarks closing higher though they witnessed some pressure during the later part of the week.

However, the ADRs preferred to follow the US market trend. Only ICICI Bank, Infosys and Sify finished on a firm note with the latter surging 12.3 per cent despite adverse conditions all around. Sify last week announced its tie-up with Indiagames Ltd to launch the former's Massively Multiplayer Online Role-Playing Game `A3' on its Games on Demand service. The company also announced its receiving ISO 27001:2005 certification accredited by BSI Group.

Among the biggest losers were Dr Reddy's Lab and MTNL with the former declining by 7.45 per cent and the latter by 7.21 per cent.

The divergent display by ADRs and their underlying equities pushed down the premium of the ADRs. Except Satyam Computer, whose ADR premium jumped to 10.65 per cent against the previous level of 6.35 per cent, other counters' premium declined.

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