The index was at 1,212.30 on February 16, down from 1,311.31 points on January 1, 2009. A sharp decrease in the price of depositary receipts (ADR/ GDR) pushed the index down.
Meanwhile, during the same period, the Sensex declined 598.01 points, or 6.01%. It was at 9,903.46 on January 1, and fell to 9,305.45 points on February 16, 2009.
Out of 15 companies that constitute the Instanex Skindia DR Index, 11 are listed on the Sensex. Among them, only five rose during the study period.
DR Dogra, deputy managing director, CARE, said, The key bench-mark index fell by 6% in 2009 due to weak investor sentiments, lack of retail and FII participation and weak global cues.
However, Indian GDR/ ADRs fell by a larger magnitude during the period. He noted that the fall was largely due to news of inflated profits in Satyams's books.
The corporate governance issue dragged down prices of most Indian GDRs/ ADRs, barring Infosys. Also, dismal Q3 FY09 performance by Indian companies, combined with weak global cues cast its shadow on the depositories of Indian companies, he noted.
Except five, all the old and new economy companies, which have overseas listings in the form of GDRs/ADRs, have shown a downward trend in their prices.
ICICI Bank's ADR price decreased by $1.79, or -9.3% (-11.8% in domestic market), during the study period.
Dr.Reddy's too declined sharply; it was down $0.85, or -8.6% (-12.1% in the domestic market), to $ 8.95. Tata Motors was down by $0.56, or-12.6% (-20.39% in the domestic market), to $3.89.
Among new economy scrips, Infosys Techno's ADR prices showed an upward trend during the study period. It rose by $1.81, or 7.36%, to $26.38.
On the other hand, most of the GDR/ ADRs of old economy scrips witnessed a downward trend in their prices. L&T's GDR price decreased by $2.8, or -17.3%, (-18. 9% in the domestic market) since January 1, 2009.