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June 15, 2001 		Feedback  
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Trading interest shifts to ADR, GDR markets

NetScribes /Salil Panchal

A clearly weak and directionless underlying stock market has seen trading interest shift once again to the Indian global depositary and American depositary market. Thus, while the Skindia GDR index has fallen to 640.63 on June 13, 2001, from 653.84 on June 4, 2001, trading has in fact improved in select counters.

The Instanex Capital DR monitor - which tracks the GDR and the ADR markets - shows that select counters like Infosys Technologies, Hindalco, Satyam Infoway, ICICI (GDR), ICICI (ADR) and Mahindra & Mahindra have improved in trading sentiment over the past week.

The premium for the GDRs compared to the underlying share has fallen from 15.11 per cent to 14.43 per cent in the corresponding period. This has been on account of the fact that the Indian stock markets have fallen less than the Indian GDR markets.

The plus point is that trading interest was strong in the Infosys ADR, which closed at $ 70.8 at the Nasdaq market on June 13 against a price of $ 64.9 a week ago. The Satyam Infoway ADR listed at the NYSE has also gained, closing at $ 3.80 on June 13 against a level of $ 3.74 on June 4.

Monica Mansukhani, associate vice president with Instanex Capital, says that with trading interest back in select infotech counters, it could provide the trigger for some of the old-economy GDR counters like Bajaj Auto, Grasim, IPCL, L&T and MTNL to move upwards.

A source at a London-based brokerage firm tracking the Indian GDR and ADR markets said, ``We have seen frequent buy orders coming in for ICICI, VSNL and Infosys. This trend should continue over the next two weeks,'' he said.

The top losers at the Indian GDR and ADR markets this week were counters like Bajaj Auto, Telco and Rediff.com. The Bajaj Auto GDR fell from $ 6.88 on June 12 to $ 6.63 on June 13. The Telco GDR fell 3.3 per cent from $ 1.50 to $ 1.45 in the same period while Rediff.com fell from $ 2.40 to $ 2.15.

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