The Hindu Business Line : Mixed week for Indian counters

It was mixed but volatile week for the US markets even as Bear Stearns got a 28-day lifeline from the US Federal Reserve and the JPMorgan Chase & Co following its cash crisis. While the S&P-500 retreated 0.4 per cent to 1,288.14 for the week, the Dow Jones Industrial Average gained 0.5 per cent and the Nasdaq ended flat.

The selling pressure continued at the domestic market despite sharp recovery on Friday. Tracking the global markets and an unexpected drop in IIP numbers for January, the BSE Sensex dipped 1.34 per cent while the NSE’s S&P CNX Nifty declined by 0.54 per cent.

It was mixed performance by Indian ADRs as well. Among them, the worst performer was the ADR of MTNL. It fell by 10.45 per cent to $4.8 against the previous week close of $5.36. On the other hand, Tata Communications Ltd, formerly VSNL, was the best performer by gaining 4.6 per cent at $23.15 ($22.12).

IT remains weak

Infotech counters also witnessed selling pressure. Leading the losers’ pack among them was Satyam Computer, whose ADR fell by 5.6 per cent at $22.06 ($23.37) followed by Infosys, which fell 5.49 per cent at $33.94 ($35.91), and Wipro that tumbled by 3.82 per cent at $10.31 ($10.72). Patni Computers, on the other hand, gained 0.47 per cent at $10.69 ($10.64).

ICICI Bank continued to face the selling pressure, ever since it announced mark-to-market losses during the previous week. It crashed by 6.56 per cent last week to $40.34 ($43.17). However, HDFC Bank finished last week flat at $95.12 ($95.14).

Tata Motors also tumbled by 4.66 per cent at $15.43 ($16.15) after the company said that its board approved raising of additional long term resources up to Rs 4,000 crore.

Dr. Reddy’s pact

Dr. Reddy’s Lab also fell by 3.14 per cent to end the week at $13.57 ($14.01) despite the company announced its pact with 7TM pharma. It informed the exchanges that the company along with 7TM Pharma will collaborate to identify clinical candidates for pre-selected targets. As per the agreement, both will jointly develop these candidates from the pre-clinical stage up to Phase IIa (proof-of-concept). On successful completion of a Phase IIa study, the companies may either license-out the candidate for further development and commercialisation to a larger pharmaceutical company or continue the further co-development and commercialisation jointly. However, the financial terms of the agreement have not been disclosed.

Sify plummeted by 8.51 per cent at $4.03 ($4.405) and Rediff.com by 2.75 per cent at $7.08 ($7.28).

Patni Computers, Wipro and Satyam ADRs saw their premium with respect to their underlying equities listed on the BSE.

More Stories on : Stock Markets | ADR Watch

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

Stories in this Section
Mixed week for Indian counters

India at greater risk than other emerging markets: Naissance Cap

Godrej Consumer Prod (Rs 134.15): Sell

Day Trading Guide

Benchmarks likely to move up