The Hindu Business Line : Indian ADRs post mixed returns

New Delhi , July 17 Even as the rupee concerns took the sheen off most blue chip IT stocks on the domestic bourse, the American Depository Receipt (ADR) of Indian tech heavyweights have offered investors a mixed bag in the US markets since the beginning of the year. The ADR of Satyam, Patni and Rediff surged between 12-38 per cent on the US bourses - NYSE and Nasdaq, while that of IT services majors Infosys and Wipro has declined about 2-5 per cent.

The ADR of Infosys Technologies tanked 4.8 per cent between December 29, last year (the last day of trading in 2006) and July 13, 2007 when it closed at $51.91 on the Nasdaq. In the case of NYSE-listed Wipro, the ADR fell 1.8 per cent to end at $15.86, last week.

The ADR of India’s fourth largest software exporter Satyam gave investors 11.6 per cent return on the NYSE. Against $24.01 in December-end, the ADR was ruling at $26.80 at the close of trading hours on July 13. The return in the case of Patni Computer Services was even higher at 24.1 per cent. Patni ADR surged from $20.38 to $25.30.

Internet company Rediff’s stock outperformed the Nasdaq by a substantial margin. Against $18.40 on December 29, 2006, the counter finished at $25.41, rising 38.09 per cent on the Nasdaq. It is pertinent to mention here that for the same period, the Nasdaq Composite Index rose 12 per cent, while NYSE Composite Index was up 11.8 per cent.

However, business process outsourcing firms WNS and EXL which are listed on NYSE and Nasdaq, respectively, failed to keep pace with the US bourses’ returns. WNS, which raised about $224 million in an IPO at $20 per ADS in 2006, fell 10.1 per cent at $27.94 on the NYSE. During the same period, the EXL scrip also plummeted 10.17 per cent on the Nasdaq.