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Expectations of rate cut when the US Fed meets on December 11 sparked the market across the globe. The US Federal Reserve officials including its Chairman, Mr Ben S. Bernanke, signalled more interest rate cuts may be on the way. The S&P 500 added 2.8 per cent, while Dow Jones Industrial Average rose 3 per cent and the tech-focussed Nasdaq 2.5 per cent.

Taking strong positive global cues, the domestic bourses also surged. Despite timid GDP data and FII pull out, the BSE Sensex bounced 2.71 per cent while the NSE’s S&P CNX Nifty surged 2.75 per cent.

Indian ADRs also witnessed sharp recovery. Among the top gainers were VSNL and Sterlite Industries with the former gaining 26.2 per cent and the latter 17.9 per cent. They closed the week at $33.11 ($26.24) and $26.3 ($22.3) respectively.

The Maharashtra Government, last Thursday, repealed the Urban Land Ceiling Act. As VSNL and MTNL have land bank, which they can now sell following the repealing of the Act, investors are expecting potential value unlocking. The MTNL ADR jumped 7.5 per cent to $8.93 ($8.31). During intra-week, the ADR touched a high of $9.25.

Talk that Sterlite Industries may de-merge Sterlite Energy and list it separately seemed to have lifted the former. Sterlite Energy is a 100 per cent subsidiary of Sterlite Industries and market men expect the proposal, if turns out to be true, to unlock value for Sterlite Industries.

Among IT, Wipro was the star performer, as the ADR surged 10 per cent to $14.5 ($13.22) during last week. While Infosys gained 7.8 per cent at $42.15 ($39.15), Patni Computers moved up by 7.3 per cent to $16.19 ($1.09) and Satyam Computer by 4.1 per cent at $26.16 ($25.12).

Sub-prime woes failed to check the progress of banking counters. While HDFC Bank surged 7.2 per cent, ICICI Bank gained 3 per cent. The ADRs closed at $134.49 ($125.5) and $60.51 ($58.76) respectively.

Dr. Reddy’s Lab closed with a marginal gain of 1.7 per cent at $15.71 ($15.45).

The lone loser among the ADR was Sify. It fell by 0.6 per cent even as the other Internet major Reiff.com surged 10 per cent.

While the premium of Infosys, Wipro, MTNL, VSNL and Patni Computers ADRs improved, HDFC Bank, Dr. Reddy’s Lab and Infosys saw a dip in their premium. There were not much deviations in the premium/discount of the other ADRs.

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