During this period, the S&P CNX MidCap 200 index gained 30.77% to 1,993.10 while S&P CNX 500 gained 28.49% to 1,478.75.
In companies such as Pentasoft Technologies, the GDR holding, in fact, came down to zero during the quarter ended September 2004 as compared to 32.08% in June and 68.73% in March 2004. Similar trends were witnessed in SPIC as well as SIV Industries. In SPIC, the GDR holding declined from 20.67% in the March 2004 quarter to zero in the September 2004 quarter.
In SIV Industries, it dropped from 4.53% in the March 2004 quarter to zero in the September 2004 quarter.
According to Aditya Palwankar, fund manager, JM Financial Mutual Fund, Domestic markets witnessed improved liquidity as well as sharp price movements in mid-cap stocks during the quarter, as compared to the illiquid GDR market. This has seen players converting their GDR holdings into local shares.
A dealer from the domestic brokerage house said, The sharp movement in the prices of these mid-cap stocks has also given some overseas players an exit opportunity in some illiquid mid-cap stocks.
A sharp decline in GDR holdings has also been witnessed in other mid-cap companies. For instance, the GDR holding in Maars Software in Q2/FY05 is down to 30.23% from 68.02%, Aptech (down from 12.47% to 8.89%), Mascon Global (down from 77.26% to 71.5%), Core Healthcare (down from 7.12% to 2.56%), and Ballarpur Industries (down from 5.64% to 2.65%).