The Hindu Business Line : Dr. Reddy's hits new high; banking counters suffer

WORRIED over that Federal Reserve may resort to raising interest rates, the US equities slipped. Besides, weaker-than-expected financial performance from Google Inc and Amazon.com spoiled the mood. The Dow Jones Industrial Average slipped one per cent while the S&P-500 tumbled 1.5 per cent; the fall was even bigger for Nasdaq that dwindled by 1.8 per cent.

Back home, the scene was no different. Profit-taking coupled with concern over crude price spoiled the mood here. The BSE Sensex declined 1.30 per cent while the NSE's S&P CNX Nifty tumbled 1.41 per cent.

However, it was a mixed trend for the ADRs; while Dr. Reddy's Lab, Tata Motors and Wipro hit their 52-week highs, MTNL and banking counters - HDFC Bank and ICICI Bank - tumbled.

Dr. Reddy's announced that it plans to sell its copy of Sanofi-Aventis SA's allergy drug Allegra in the U.S. this year. It also announced that it agreed with Merck & Co to sell versions of cholesterol drug Zocor and prostate drug Proscar in the US

Fear that rising interest rates will hurt banks' treasury income seemed to have affected the banking counters.

MTNL, which said that its third-quarter profit fell 33 per cent, was the biggest loser.

Tata Motors reported a total sale of 46,635 vehicles (including exports) for January, a growth of 19.6 per cent over 39,000 vehicles sold in January last year. The ADR flared up to $16.1 from the previous week's $15.85.

Satyam Computer announced that it secured $150 million of orders from General Motors Corp. The ADR gained to $39.06 ($38.95)

Wipro also announced the bagging of an order from GM worth $300 million. Following the announcement the ADR rose sharply to hit a new 52-week high. However, the ADR slipped to close flat after it came out with a clarification that the deal was worth only to the tune of $27 million.

Infosys, however, finished slightly higher at $74.81 ($74.73) while Patni Computers ended a tad weak at $23.96 ($24).

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