The Hindu Business Line : Indian counters' fall more severe than benchmarks

Blame it on the Chinese market or yen carry trade unwinding, or `possible' slowdown in the US economy, the US stock markets tanked the most last week; for the week, the Dow Jones Industrial Average lost 4.2 per cent, its biggest point drop since the week that ended July 19, 2002; the Nasdaq slumped 5.8 per cent while the S&P's 500-stock fell 4.4 per cent. For the domestic markets, besides global concerns, the uninspiring Budget and FIIs' selling weakened the benchmarks to their 19-week lows.

With all-round gloomy conditions, ADRs also suffered in the carnage.

Except for Patni Computer, the fall in other Indian ADRs was more severe than the benchmarks. Patni Computer declined by 2.75 per cent at $22.29 against the previous week close of $22.92.

Rediff.com was the worst performer by losing almost 14 per cent. Sify (13%), Wipro (12.6%) and VSNL (12.2%) were the other top losers. Dr Reddy's and ICICI Bank also fell in excess of 10 per cent.

The performance of the respective underlying equities was comparatively better, but that reduced the premium of most ADRs. Dr Reddy's at negative 2.3 per cent (5.32 per cent) and HDFC Bank 0.27 per cent (5.92 per cent) witnessed sharp declines in premium.

More Stories on : Commentary | ADR Watch

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

Stories in this Section
Now, time to rework strategy following Budget pronouncements

Go for Sensex stocks in small numbers

`Funds know they will miss an opportunity if they don't set up base in this country'

Indian counters' fall more severe than benchmarks

No dramatic turnaround likely