Reflecting the improved sentiments on account of the US Senate's vote to waive the sanctions for one year, the Skindia GDR index appreciated by 2.71 per cent to close at 747.32 points on July 16.

However, the volatility in the local bourses failed to influence the movement of the GDRs which saw the Skindia GDR premium index take a severe beating. The index slumped by 10.83 per cent to close at 18.84 per cent on July 16 against the previous week's close of 21.13 per cent. The 65 GDRs registered a gain of 3.15 per cent during the week ended July 16. However, the underlying shares registered a marginal gain of 2.36 per cent.

The price earning multiple GDR index, however, quoted at 17.16 points against 16.94 points the previous week.

Interestingly, among the top gainers in the GDR market, Videocon International featured as the top ranker, recording a net gain of 52.17 per cent toclose at $1.75. The other gainers were GDRs of Crompton Greaves and Finolex Cables which appreciated by 17.65 per cent to close at $1 and $3 respectively.

However, the GDR of Wockhardt was the top loser during the week ended July 16. The GDR lost 21.63 per cent. GDRs of BSES and Ranbaxy laboratories were the next to follow with each of them recording a loss of 7.27 per cent and 2.17 per cent respectively. GDR of Oriental Hotels was trading at a large premium of 263.24 per cent on July 16 over its underlying shares, while Flex Industries was quoting at a premium of 219.20 per cent and JK Corp at a premium of 195.56 per cent to their underlying share. As against this, the GDR of Himachal Futuristic was trading at a discount of 42.59 per cent to its underlying shares, GDR of Usha Beltron was trading at a discount of 28.99 per cent and Wockhardt was at a discount of 10.34 per cent. The cable sector continued to remain a gainer in the GDR market, recording a rise of 8.82 per cent. This was followed by telecomand auto recording gains of 6.94 per cent and 3.95 per cent respectively. The pharma sector was a loser in the GDR market. However, this sector was the top gainer in the local market, recording a gain of 7 per cent.

According to the study carried out by Skindia on the spreads between a bid and offer, the average spread for the first quarter of 1998 was 60.88 per cent against 59.12 per cent in the second quarter. The spreads of East India Hotels widened from 6.76 per cent to 11.81 per cent against this the spreads of Videocon International declined the most from 68.29 per cent to 29.30 per cent.