The Hindu Business Line : Sify, Rediff.com plummet

Sharp falls on Thursday and Friday ensured that US stocks saw the biggest weekly falls in five years. According to Bloomberg, the S&P 500 lost 4.9 per cent last week – its biggest weekly plunge since 2002, while the Dow Jones Industrial Average declined 4.2 per cent – the steepest drop since March 2003. About $2 trillion of global stock market value was wiped out this week, according to data compiled by Bloomberg.

The sudden turn of events at the global level impacted Indian bourses too. Even as both the Sensex and Nifty registered their all-time high levels during the earlier part of the week, the last-day carnage washed out the gains.

The BSE Sensex ended the week down by 2.13 per cent, while the S&P CNX Nifty of the NSE shed 2.65 per cent.

None of the Indian ADRs was spared by the global upheaval. Sify and Rediff.com both announced uninspired numbers and ended up as the biggest losers, by 21 per cent and 22 per cent respectively.

Among the ADRs whose underlying equity is listed in the domestic bourses, ICICI Bank was the biggest loser, plunging 15.75 per cent to $44.16 ($52.42).

The next biggest loser was Sterlite Industries (10.9 per cent), which announced a drop in first-quarter net to Rs 201.46 crore (Rs 223.49 crore).

The ADR of Patni Computer also dropped in excess of 10 per cent at $23.05 ($25.7) despite the company announcing the acquisition of US-based Taratec Development Corp for an aggregate price of $27.2 million in cash.

Infosys, which announced that it has signed a multi-million dollar outsourcing contract with Royal Philips Electronics of the Netherlands, also ended weak at $50.50 ($53.71). Satyam and Wipro also finished lower by 7.6 per cent and 4.01 per cent respectively.

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