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ADR Watch
Most counters end on weak note
K.S. Badri Narayanan
Thanks to weakening crude oil prices and better-than-estimated results from J.C. Penney Co. and Kohl's Corp, the US stocks ended on a positive note. While the S&P 500 stock climbed 0.2 per cent, the tech focussed Nasdaq jumped 1.6 per cent. However, the Dow Jones Industrial Average declined 0.6 per cent on the back of weak economy data.
Profit taking coupled with lack of participation by major players spoiled the party for the domestic markets. Besides, weak Index of Industrial Production (IIP) data at 5.4 per cent in June from 8.9 per cent in the same month last year also affected the sentiment. The BSE Sensex tumbled 2.92 per cent and the NSE's S&P CNX Nifty by 2.18 per cent.
Despite the firm US markets, most of the Indian ADRs ended on a weak note. Banking counters ICICI Bank and HDFC bank were the worst performers among them. While the ICICI Bank ADR crashed by 11.44 per cent, the HDFC Bank ADR tumbled by 8.2 per cent. Surging inflation coupled with fresh fears on the global economy seemed to have affected the sentiment for these counters.
Patni Computers was the
other big loser; its ADR
slumped by 7 per cent even as
Infosys Technologies and Wipro
finished the week on a
positive note. While Infosys
gained 2.16 per cent at $42.42
($41.52), Wipro Technologies
closed at $11.68 ($11.45), a
gain of 2 per cent.
Satyam Computer, however,
closed the week on a weak
note at $22.93 ($23.2), a fall of
1.16 per cent.
The slump in commodity
markets seemed to have affected
the Sterlite Industries
counter - its ADR crashed by
6.6 per cent at $13.94 ($14.96).
The market even discounted
the positive verdict it got
from the Supreme Court for
exploring bauxite in the Niyamgiri
Hills. While giving
the green signal for the exploration,
the Supreme Court
has directed that the bauxites
produced should be valued
according to the London metal
exchange method.
Telecom majors MTNL
and Tata Communications also
ended on a negative note at
$5.14 ($5.2) and $19.96
($21.07) respectively.
The ADR of Dr. Reddy's
Lab declined 4.6 per cent to
$14.07 ($14.76). It may be
mentioned here that the promoters
have been hiking their
stake in the company through
secondary market purchases.
The week's biggest gainer
was Rediff.com, whose ADR
jumped by a whopping 20 per
cent to close at $7.15 ($5.93).
The other Internet major Sify
also finished on a positive
note at $2.84 ($2.78).
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