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Volatility hogged the global markets after the S&P downgraded the US debt. After wild swings, the Dow Jones Industrial Average was down 1.5 per cent and the S&P-500 slipped 1.7 per cent while the tech-focussed Nasdaq was lower by one per cent.
The domestic markets also suffered under global uncertainty. The BSE Sensex slumped 2.7 per cent and the NSE's S&P CNX Nifty by 2.65 per cent on the back of heavy foreign institutional investors' selling.
Among the ADRs, MTNL, Infosys Technologies, Tata Motors and Wipro were the worst affected.
IT sector was on the downswing since the downgrade. Infosys slumped 6.29 per cent to $53.78 against the previous week close of $57.39; Wipro fell 5.17 per cent at $10.45 ($11.02) while Patni Computer crashed 7.66 per cent at $12.54 ($13.58). Mahindra Satyam, erstwhile Satyam Computer, slipped 2.2 per cent at $3.22 ($3.31).
However, banking majors – HDFC Bank and ICICI Bank – finished on firm note. While the former surged 1.66 per cent, the latter moved up by 0.26 per cent. ICICI Bank last week hiked the key interest rates by 50 basis points.
Tata Motors climbed down further last week. The ADR fell 5 per cent at $18.21 ($19.17) after the company announced financial performance that failed to meet Street expectations. The company announced a consolidated net profit of Rs 1,999.62 crore for the quarter ended June 30, 2011, compared with Rs 1,988.73 crore for the quarter ended June 30, 2010. Total income jumped to Rs 33,648.54 crore (Rs 27090.12 crore).
Jaguar unit sales declined 27 per cent in the period from a year-earlier, while Tata Motors posted an 8.5 per cent drop in Indian passenger vehicle sales.
Pharma major Dr. Reddy's Lab also finished lower by 1.31 per cent at $33.24 ($33.68).
Sterlite Industries was the other big loser; the ADR tumbled 6.13 per cent at $11.94 ($12.72), as the metal price fell sharply in London Metal Exchange.
Internet counters displayed a diversified trend last week. While Rediff.com jumped 4.92 per cent, Sify crashed 6.8 per cent.
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