The Hindu Business Line : Most ADRs touch 52-week low

Thanks to the Federal Reserve, which cut the interest rate by 75 basis points to boost liquidity, the US stocks closed with solid gains last week. While the Dow Jones Industrial Average jumped 2.16 per cent, the Nasdaq average jumped 2.18 per cent and S&P-500 2.39 per cent.

However, the domestic markets continued their slide on the back of slowdown worries. The BSE Sensex tumbled 4.86 per cent and NSE’s S&P CNX Nifty 3.62 per cent.

Despite sharp gains at the US bourses, 10 ADRs — Dr Reddy’s Lab, ICICI Bank, Infosys Technologies, MTNL, Patni Computers, Satyam Computer, Tata Motors, Wipro, Sify and Rediff.com — registered their 52-week lows during last week. However, most of them have recovered from their 52-week lows marginally.

The worst performer among them was ICICI Bank, as the ADR crashed by 10 per cent to $35.95 against the previous week close of $40.34. The other banking counter HDFC Bank slipped 0.7 per cent to end at $94.37 ($95.12).

Sterlite Industries was the other biggest loser, as the ADR tumbled by 9.55 per cent to $17.14 ($18.95).

It was a mixed show by the IT counters. While Infosys and Satyam inched down, the ADR of Wipro jumped 3.4 per cent. However, it was Patni Computers that stole the limelight as the ADR jumped 6.17 per cent to end at $11.36 ($10.69).

Tata Communications, erstwhile VSNL, was the biggest gainer. The ADR climbed 9.4 per cent to end at $25.33 ($23.15).

MTNL and Tata Motors also finished in the green while Dr Reddy’s Lab slipped by 2 per cent.

Rediff.com and Sify maintained their downward slide with the former ending at $6.98 ($7.08) and the latter at $4 ($4.03).

ICICI Bank’s ADR dipped into discount. The ADR now commands a discount of 6.3 per cent against last week’s premium of 2 per cent. Satyam saw its premium plummeting to 12.18 per cent (24.55 per cent).

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