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Indian cos gain $57-bn valuation on American bourses

Read more on:    Valuation | American Bourses | Indian Cos | Us Markets
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The American stock market seems to be returning rich dividends to the Indian companies, as the of US-listed entities from India has grown by a staggering $57 billion since the beginning of 2012.

In the process, the 15 Indian companies listed on the US bourses (NYSE and Nasdaq) have recouped nearly half of the total loss of about $120 billion witnessed during 2011.

While Sify and Rediff.Com have seen an erosion in their market valuations, each of the remaining 13 companies have seen their value soar on the US bourses.

A few like ICICI Bank and Tata Motors have recorded significant jump in their market valuations.

"Indian ADRs performed well due to the rise in the Indian equity market," CNI Research Head Kishor Ostwal said.

American Depository Receipts (ADRs) are bought and sold on American markets just like stocks and are issued by a bank or brokerage firm.

Auto maker Tata Motors was the best performer among the ADRs with its market capitalisation surging by $34 billion to a total of $87.94 billion.

Besides, HDFC Bank's market capitalisation rose by $6.65 billion to a total of $27.16 billion, while that of ICICI Bank grew by $5.9 billion to $21.13 billion.

Experts said that the the Indian ADRs' performance is mostly related to the domestic equity market in India, rather than the trends in the US market.

In 2012 so far, the US benchmark index Dow Jones Industrial Average (DJIA) has gained about 6.45% to close at 13,005.12 points, whereas India's key 30-share Sensex index has gained about 15% to 17,731.12 points.

Among technology majors, Infosys has witnessed a gain of $4 billion in market capitalisation to $33.43 billion. The valuations of Wipro and Patni Computer Systems have jumped by $1.95 billion and $194 million respectively, to $27 billion and $1.29 billion.

Sterlite Industries has seen its market capitalisation increasing by $2.41 billion in valuation to $8.23 billion and pharma major Reddy's Laboratories' valuation has gone up by $694 million to $5.68 billion.

Tata Communications' ADRs gained $209 million, in valuation, which took its total market capitalisation to $1.34 billion. Another mobile service provider MTNL valuation was up by $118 million to $375 million.

In the outsourcing space, WNS Holdings, EXLService Holdings and Genpact have also seen their market capitalisation growing by $90 million, $130  million and Genpact $225 million respectively.

On the other hand, internet firms Reddif.Com and Sify Technologies ended in negative zone with a loss of $9 million and $5 million respectively, so far in 2012.

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