GDRs buoyant

MUMBAI, April 11: Global depository receipts (GDRs) of Indian companies --listed on overseas stock exchanges -- showed buoyancy with the Ski...

MUMBAI, April 11: Global depository receipts (GDRs) of Indian companies –listed on overseas stock exchanges — showed buoyancy with the Skindia GDR Index gaining by almost five per cent during the week. In fact, Indian GDRs mirrored the trend in the domestic market as the Skindia GDR index crossed the 1,000 mark on April 8 after a gap of five months.

The index moved from 951.30 to close at 999.93 in the bygone week. "The establishment of a BJP-led government at the centre, visualised as being stable by the market, coupled with falling interest rates and positive comments by the finance minister to encourage foreign direct investment in non-priority areas also, helped the international and domestic markets to cross important resistant levels," said a fund manager.

Another FII source said the new government has not announced any measure which would affect economic reforms or foreign investment. "There is an expectation that the government will raise customs duties to protect domestic industries," hesaid.

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The top gainers were Videocon International which saw a substantial gain of 190 per cent rising from $ 1 to $ 2.90. The other gainers were Raymond Woollen which rose by 41.25 per cent from $ 4 to $ 5.65 and Indo Gulf which jumped by 33.33 per cent from $ 0.90 to $ 1.20.

The top losers among GDRs were JCT Ltd with a loss of 20 per cent, down from $ 1.25 to $ 1.00, Indian Aluminium saw a loss of 10 per cent from $ 3.00 to $ 2.70 and Mahindra and Mahindra which saw a loss of 6.29 per cent, fell from $ 8.75 to $ 8.20.

The Skindia GDR Index P/E rose by a marginal 3.15 per cent to 21.94 per cent from a level of 21.27 per cent, last week. While the Skindia GDR Index Premium also gained a marginal 3.43 per cent to 21.03 per cent from 20.34 per cent.

During the week, 65 GDRs gained 7.07 per cent as compared to a gain of 11 per cent in the underlying shares.