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Our Market Bureau
MUMBAI, Oct 17: The federal rate cuts on Friday provided the much-needed support to the GDR market indices which were drifting southward on account of the US-64 fear. The week ended October 15 saw the Skindia GDR Index close at 530.56 points, registering a net recovery of 3.07 points over its previous week's close.
"The news of the problems in the US-64 scheme, the flagship scheme of the UTI, continued to have a negative impact on the markets," a senior analyst at Skindia Finance said. During the week, the 60 GDRs, on an average, declined by 2.98 per cent while their underlying stocks lost 3.60 per cent.
The Skindia 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 during the week ended October 8. This was on account of the steeper fall in the market indices on the local front.
The GDRs of Bajaj Auto and BSES traded at apremium of 28.82 per cent and 27.29 per cent respectively. Bajaj Auto GDR closed at $17.08, registering a net gain of 9.28 per cent over its previous week's close. ITC GDR also marched up by 6.64 per cent to close at $18.88. The hotel industry GDRs outperformed the Skindia GDR Index. GDRs of the hotel sector were the top gainers with a rise of 2.09 per cent, followed by aluminium and telecom sector ones which appreciated by 2.02 per cent and 1.11 per cent, respectively.
However, GDRs of the pharma and cement industry continued to decline further in the absence of fresh support. GDRs of the pharma sector registered a loss of 8.69 per cent while the cement representatives fell by 5.70 per cent.
While bears tightened their grip at the Telco counter on the local front, Telco GDR also lost ground with continuous bouts of sales pressed by FIIs. Telco GDR touched a new 52-week low to trade at $2.55 while at the local markets, Telco traded at a new low of Rs 103.80. A study conducted by Skindia Finance to trackthe co-relation between Skindia GDR Index and the major Indian stock indices for the period between October 1996 and September 199 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.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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