The Hindu Business Line : ICICI Bank in limelight

SHARP surge in oil prices, which climbed to a record close of $56.72 a barrel in New York, and disappointing forecast from auto major, General Motor Corp, weakened the US markets. The Dow Jones Industrial Average fell 1.3 per cent to 10,629.67 while the Standard & Poor's 500 Index dropped 0.9 per cent to 1189.65 and the tech-focussed Nasdaq slumped 1.7 per cent to 2007.79, a new low for the year.

Apart from high crude oil price, dramatic slowdown in FII activity coupled with profit-bookings affected the sentiment for the domestic bourses. As a result, the BSE Sensex crashed 2.24 per cent to 6700.34 while the NSE' S&P CNX Nifty tumbled 2.08 per cent to 2109.15.

Despite adverse conditions at the stock markets, Indian tech ADRs - Infosys, Wipro and Satyam Computer - were relatively stable. Infosys, in fact, finished on a firm note at $75.6 against the previous week close of $74.4 while Wipro finished flat at $21.1 ($21.1). Satyam, however, closed a tad weak at $22.9 ($23.27) despite the company saying it wants to expand its software development and sales network overseas to move workers closer to customers.

However, it was ICICI Bank that stole the limelight. The bank's decision to convert 4.42 crore shares (or 6 per cent) appeared to have lifted the counter. The ICICI Bank ADR closed the week higher at $21.68 ($20.60) against the underlying stock close of Rs 413.05 (Rs 390.20) on the BSE. Each ICICI Bank ADR is worth two equity shares.

In contrast, the other banking counter - HDFC Bank - was the worst performer during the week. It's ADR fell to $43.90 against the previous week close of $48.24.

Reports that BSNL favours MTNL as its subsidiary seemed to have affected the latter, which closed at $6.88 ($7.43). Meanwhile, Government officials will meet on Monday to discuss the report that ICICI Securities, the adviser, had submitted on the proposed merger.

There were no much deviations on the premium/discount front, as most of them held on the previous week levels.

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