The MTNL GDR dropped by 6.35 per cent at $ 9.95, while VSNL lost 2.125 per cent. State Bank of India, which had led the recovery in the Indian markets on Monday, however, held steady losing about 0.65 per cent. Reliance GDR prices witnessed a sharp fall of 4.31 per cent in the mid-session trading. L&T was down by 4.63 per cent. The GDR markets had witnessed a correction ahead of the domestic markets. The Skindia GDR index which had hit a 52-week high of 804 points dropped towards last week end.

Though the index gained marginally on Friday, Monday's mid-session suggested that the Indian paper was struggling to crawl back. The correction has occurred in almost all the GDRs which had seen a sharp rise during the Indian paper chase.

Hindalco and Indal, which hadgiven early leads to the rally in the GDR markets, declined by 1.51 per cent and 2.82 per cent respectively. The ITC GDR slid 2.95 per cent in the mid-session.

The GDR markets, it may be recalled, was rising at a much faster rate than the domestic markets in the early days of the rally.

The GDR index had posted a gain of over 28 per cent even as the BSE sensex had gained just about 12 per cent.

Interestingly, on Monday, GDRs of Grasim, Century Textiles, Arvind Mills, Ashok Leyland, IPCL and Spic recorded handsome gains.