The continued strength of Infosys ADRs had lead to the firm topping the M-cap sweepstakes. The ADR trades at a premium of about 70 per cent to the domestic price. It has had a dream run during the last month and the price has gone up from about $50 on October 1 to close to $90 in end-November. There has been a minor correction and stock closed Wednesdays trading session on the Nasdaq at around $82, said an analyst with a domestic brokerage firm.
The M-cap of Infosys is about $2.2 billion higher than that of EDS, which stands at $8.65 billion (Rs 41,548 crore).
Infosys racing ahead of EDS in terms of mcap is testimony to the faith foreign investors have in the Indian offshore model. While EDS reported poor quarterly results, Infosys numbers pleased the market. There is a very clear shift in customer preference towards offshore players with bases in India, the analyst explained.
However, based on prices in the Indian market, Infosys still lags behind Wipro and a few other old economy titans.