Gdr Barometer Outdoes Sensex, Gains 3.59%

The Skindia GDR Index (SGI) outperformed the Bombay Stock Exchange Sensex last week with a rise of 3.59 per cent.

The SGI has moved up 16.35 per cent from the year's low of 392.31 reached on September 25, 2001, after the US terrorist attacks.

Among the 23 index stocks, there were 17 gainers and 4 losers, while Gujarat Ambuja and IPCL remained unchanged.

During the week, there were 4 gainers and 6 losers among 11 American depositary receipts (ADRs) with Silverline Technologies (up 34.31 per cent to $1.37) as the biggest gainer and VSNL (down 8.33 per cent to $8.80) as the biggest loser. Rediff remained unchanged at $0.75.

As per a study conducted by Instanex Capital Consultants, the Skindia GDR Index (SGI), down by 10.84 per cent, has underperformed the Sensex (down 6.35 per cent), Dow Jones (down 4.60 per cent) and Nasdaq (down 2.52 per cent) between September 10 and October 18, 2001.

These three indices have touched their lows during September. Sensex was down 18.33 per cent, Nasdaq down 16.05 per cent and Dow Jones down 14.26 per cent. SGI witnessed a 23.37 per cent fall on September 25, 2001.

The SGI premium shot up 4.03 per cent as the index outperformed local indices . During the week, State Bank of India (weightage 9.37 per cent; up 5.98 per cent to $9.75), VSNL (weightage 7.57 per cent; up 2.15 per cent to $9.50), Hindalco (weightage 7.43 per cent; up 2.30 per cent to $15.60) and Larsen & Toubro (weightage 5.36 per cent; up 4.46 per cent to $8.20) led the upswing among the index stocks.

The technology-heavy Nasdaq witnessed a decline of 3 per cent this week. All Nasdaq-listed Indian ADRs fell with Rediff down 23.91 per cent to $1.13, Satyam Infoway down 3.33 per cent to $2.32 and Infosys Technologies down 2.69 per cent to $65.16.

VSNL's premium shot up 58.31 per cent over the week due to a sharp fall in its local price (down 34.27 per cent) and a marginal gain in its global depository receipt (GDR) price (up 2.15 per cent).

This has resulted in VSNL as the top premium company with its GDR trading at a premium of 63.88 per cent to its local share price.

Meanwhile, following upgradation by Moody's Investor Service on January 14, 2002, of the long-term foreign currency bond rating of ICICI to Ba1, it has become the only Indian company to receive a rating higher than India's sovereign rating of Ba2.

On January 15, its ADR and local share closed at $5.90 (up 6.25 per cent) and Rs 48.40 (up 9.38 per cent), respectively. The institution plans to raise between $75 million and $100 million via a syndicated loan issue.