GDR index touches all-time low

MUMBAI, June 6: The GDR market reacted negatively to the budget presented by the Finance Minister and the indices tumbled on account of lack of strong policies to kickstart the economy. Since the budget, Skindia GDR index lost 74.57 points. The Skindia GDR index is currently 1.51% above its all time low of 672.50.

Overall the 65 GDRs lost 5.59 per cent during the week and underlying shares declined 4.92 per cent. While no industry was a gainer in the GDRs, the major losers were the auto sector losing 16.16 per cent, aluminium sector losing 11.61 per cent and hotel sector declining 10.50 per cent.In the underlying shares only the steel sector was a gainer appreciating 7.09 per cent and the major losers were shares from the cable, auto and aluminium sectors depreciating 12.80 per cent ,12.19 per cent and 5.62 per cent.

Although the budget provided an 8 per cent hike across the board in import duty resulting in additional protection to the industry, the GDRs from the aluminium sector did not react verypositively. Hindalco’s GDR gained a marginal 1.03 per cent to $ 14.65, while the Indal GDR lost 36.09% $ 2.65 since the presentation of budget.

A 10 per cent raise in import duty on I C engines and its part and a five per cent excise hike in multi-utility vehicles had a negative impact on GDRs from the auto sector. The GDRs of M&M and the Telco depreciated 18.26 per cent to $ 4.70 and 17.36 per cent $ 5.00 over the week.