The Hindu Business Line : Mixed trend prevails

WITH Hurricane Katrina set to slowdown the US economy and to have higher economic implications, the US markets declined last week. The S&P 500 slipped 0.3 per cent, the DJ Industrial Average lost 0.3 per cent and the Nasdaq declined 0.7 per cent.

Throwing the caution advices into the wind, the domestic markets continued their surge to create new history on the back of strong foreign institutional investors' flow. In the last week, the BSE Sensitive index went up to an all-time intra-trade high of 8,388.80 before ending at a new all- time high of 8,380.96 against the last weekend's close of 8,060.01 reporting a net gain of 320.95 points or 3.98 per cent. In the broader market, the S&P CNX Nifty of the NSE gained 96.90 points or 3.95 per cent at yet another new-high of 2,552.35.

But despite the sharp surge in Indian indices, the ADRs were rather cautious. Except for HDFC Bank and ICICI Bank, which have gained in excess of six per cent, the rest of them gained between 1.5 per cent and 3.5 per cent.

The ADRs of Infosys and MTNL declined even as their underlying stocks gained, albeit marginally. Internet counters, Sify & Rediff.com also declined.

The ADR of VSNL gained 2.3 per cent while its underlying stock surged 4.20 per cent. But the divergent trend was more telling in the case of HDFC Bank; while its ADR surged 6.18 per cert, the stock gained by only 1.8 per cent, resulting in its premium widening to 7.8 per cent (3.28 per cent).

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Is there a case for regulating MF distributors?

Corpn Bank to vend Principal MF products

Pivotals may maintain uptrend

Easy to recommend, risky to follow

Mixed trend prevails

A lot of positive factors going for India

Bharat Overseas IPO soon