The Hindu Business Line : Tata Motors tumbles 12%

Equities fell across the globe last week following an unexpected pick up in US economic activity once again raising concerns of higher interest rate regime. The S&P 500 lost 1.9 per cent to 1507.67; the Dow Jones Industrial Average retreated 1.8 per cent to 13,424.39, while the Nasdaq Composite Index fell 1.5 per cent to 2573.54.

Domestic bourses too followed suit on global cues. Both the BSE Sensex and the NSE's S&P CNX Nifty fell 3.48 per cent each on the back of global upheaval.

It was a dismal week for the Indian ADRs as well. Except for Satyam Computer and Patni Computer, all the other counters ended in the negative territory. Patni Computer was in the thick of action recently following reports of one of its promoters planning to sell his stake. The ADR gained 0.59 per cent to end at $26.99 against the previous week's close of $26.87

Tata Motors was the biggest loser by 12 per cent. Reports of production cut seemed to have affected the counter. Its underlying equity also fell by 12 per cent on the BSE. While the ADR closed at $16.47 ($18.78), the stock finished at Rs 653.6 (Rs 747.5).

MTNL was the second biggest loser by 5 per cent, while banking counters - HDFC Bank (4.4 per cent) and ICICI Bank (3.48 per cent) also declined.

Internet counters Sify and Rediff.com slipped by over two per cent.

Indian ADRs almost maintained their previous week premium against their respective underlying equities.

Meanwhile, Sterlite Industries India announced that it has commenced distribution of the preliminary prospectus in anticipation of a global offering of 125 million of its equity shares in the form of American Depository Shares. These equity shares in the form of ADS will represent an approximately 18.3 per cent interest in Sterlite post-offering. The company has applied to have its ADS listed on the New York Stock Exchange under the symbol SLT.

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