The Hindu Business Line : Most Indian counters end positive

Despite witnessing turbulent times, the US markets ended last week on a positive note on hopes that the Government will take steps to avert a credit crisis. The S&P 500 Index advanced 1.4 per cent and the Nasdaq 1.3 per cent, while the Dow Jones Industrial Average added 0.4 per cent after the Fed pumped $38 billion cash into the banking system and pledged more “as necessary” to bolster investor confidence.

The Indian stocks along with other global markets tumbled following concerns about funds pulling out money, after France’s largest bank BNP Paribas on August 9 froze three funds that had invested in the US sub-prime market.

The BSE Sensex and the NSE’s S&P CNX Nifty slipped 1.8 per cent and 16 per cent respectively.

Despite a sharp fall, most Indian ADRs except information technology counters, managed to end in the positive zone.

Even IT counters closed the week i.e. on Friday on a positive note.

Satyam Computer managed to end the week at $26.45 against the previous week’s close of $26.1.

Wipro, on the other hand, was the biggest loser by 2.58 per cent even as bellwether Infosys Technology slipped 0.14 per cent and Patni Computer by 0.6 per cent.

Sify was the star performer last week. The counter ended 12.4 per cent higher at $20.83 against the previous week close of $20.69.

The other Internet major Rediff.com, which was under severe bear hammering recently, also ended on a positive note at $15.59 ($5.13), a gain of 3 per cent.

MTNL was the other counter that stole the show. The ADR jumped six per cent to close at $6.94 ($6.55). MTNL during the week informed the BSE that the company and a consortium of IDEB-SUCG Knowledge Park Pvt Ltd have joined hands for joint development of the company’s plot situated at B-3, Institutional Area, Sector-62, Phase-II, Noida (UP), measuring about 19.76 acres, for a training centre – Core Knowledge Park within the terms of lease of the land. The other telecom major VSNL nudged up by 0.67 per cent.

Dr Reddy’s Lab and HDFC Bank also witnessed sharp gains of 3.5 per cent and 2.7 per cent respectively though ICICI Bank slipped 1.7 per cent to close at $42.39 ($43.14).

Thanks to a strong show by vis-À-vis their underlying equities, Indian ADRs were able to widen their premiums or reduce their discounts.

MTNL is now trading at a marginal premium of 0.43 per cent against last week’s discount of 7.52 per cent.

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