GDR Index creeps closer to 52-week low

Of the 65 GDRs, 40 were trading at their 52 week low on December 11. Among them were pivotals like BSES ($ 13.50), Gujarat Ambuja Cement ($ 6.75), Hindalco ($ 19.50), Larsen ($ 8.75) and Telco ($ 7.38). A cold Christmas is foreseen in the international markets as signs of imminent revival seem unlikely. The fallout of the crash in Asian markets, a fluid political sitution and the falling rupee increased selling presure in the GDR market in the last two months. In the period October 12-Decmber 11, 1997, the Skindia GDR Index lost 29.38 per cent compared to a fall of 10.67 per cent in the same period last year.

In the current period, the average daily erosion in 63 GDRs (VSNL and MTNL not considered) has been 0.79 per cent with only six showing an average daily appreciation as against 12 GDRs in the same period last year. Dr Reddy’s (0.24 per cent), Ranbaxy (0.20 per cent) and Grasim (0.18 per cent) experienced higher appreciation whereas Indo Rama (-1.99 per cent), JCT (-1.83 per cnet) and SAIL (-1.70 per cent) showed the maximum fall.

Since its stunning half-yearly results on November 26, ITC has been volatile in both the GDR and domestic markets. It rose consistently touching a new 52-week high of Rs 645 on December 4, in intra-day trading on the BSE, topping the turnover list on both the NSE and BSE.

However, in this week the scrip nosedived, crashing 8.80 per cent on December 9, compelling both the BSE and NSE to freeze trading in the scrip after it hit the lower end of the filter circuit. Its GDR and share finally closed at a loss of 8.33 per cent to $ 16.50 and 10.83 per cent to Rs 561.75 respectively.