GDRs bounce back on PM8217;s revival package

The increasing activities of arbitragers who reaped the benefits of the rising premiums of GDRs of ITC, Bajaj Auto, Larsen and Indian Aluminium saw the Skindia GDR index premium register a net loss of 11.09 per cent to close at 8.99 per cent. However, the GDRs of Bajaj Auto and MTNL were quoted at a premium of 25.21 per cent and 22.86 per cent respectively.

During the week ended October 29, the 60 GDRs on an average appreciated by 4.64 per cent, while the underlying securities rose by 5.38 per cent. GDRs from the power, telecom and cement sectors howevercontinued to remain net losers registering a price erosion of 3.85 per cent, 1.95 per cent and 0.84 per cent respectively.

Among the top gainers during the week was Indian Aluminium which shot up by over 51 per cent to close at 1.82, while the GDRs of Raymond Woolen and GE Shipping appreciated by 29.35 per cent and 20.99 per cent to close at 2.98 and 2.45 respectively. However, the GDRs of India Cements, Century Textiles and Hindustan Development dipped substantially to close at 0.90, 0.73 and 0.20 respectively.