Itc Gdr, Shares Slump

Reports from London said the bid and offer prices for the ITC GDR fell over Friday's levels. The offer prices for the GDR fell from $9.5 to $9 while the bid prices moved down to $8.4 against $8.5, at 1900 hours IST.

The tobacco major's GDR stood at $10.15 on October 25 with the GDR ruling at a premium of 15.87 per cent. The premium for the GDR slid to 13.11 per cent on November 1.

The fall in offer prices for the GDR signifies that parties are keen to sell at lower levels, and with the bid prices remaining steady, buying activity is not set to rise. It is expected that the Indian GDR market could turn weaker in the coming days on account of the ITC controversy. "The sentiment is not likely to improve until fundamentally strong mega-issues come into the market,'' says Navin Agrawal of Skindia Finance, a broking house which tracks the GDR market.

 

The ITC stock dropped Rs 11.50 on the BSE to close at Rs 287.25 while it cloed at Rs 290.25 on the NSE, against Friday's closing of Rs 299-300 at the major bourses. Reliance and SBI GDR prices also moved down mirroring the ITC trend. The RIL GDR offer price fell from $11.50 on Friday to $10.70 yesterday.