GDRs gain 3% on US rate cut

TheSkindia GDR P/E index registered a gain of 2.79 per cent to close at 14.53 points on October 15. Interestingly, the Skindia GDR premium index recorded a sharp jump of over 18.97 per cent to close at 10.54 per cent from a low of 8.86 per cent registered during the week ended October 8. This was on account of the steeper fall in the market indices on the local front.

However, the GDRs of pharma and cement industry continued to decline further in the absence of fresh support. The GDRs of pharma sector registered a loss of 8.69 per cent while the cement representatives fell by 5.70%.

While bears tightened their grip at the Telco counter on the local front, the GDRs of Telco also lost ground with continuous bouts of sales pressed by FIIs. The Telco GDR touched a new 52 week low to trade at $ 2.55, while at the local markets, Telco was traded at a new low of Rs 103.80.

A study conducted by Skindia Finance to track the co-relation between Skindia GDR index and the major Indian stock indices for the periodbetween October 1996 and September 1998, revealed that the GDR index had a low co-relation with these indices. The Skindia GDR index has a co-relation of 35.59 per cent and a beta of 0.40 per cent with both the BSE Sensex and the S&P CNX Nifty.