It was one of the worst weeks in recent times for the global markets. According to Bloomberg, this was the steepest weekly drop since July 2002 as news from all corners – be it home construction or retail sales; financial performance from corporates or sub-prime woes for financial majors – painted grim picture for the US economy. The S&P’s 500 Index crashed 5.4 per cent this week to 1,325.19, the lowest level since September 2006, while Dow Average Industrial Average slumped 4 per cent and the tech-focussed Nasdaq by 4.1 per cent.
Global sentiment affected the domestic market mood too. The BSE Sensex plunged 8.71 per cent, while the broader NSE’s S&P CNX Nifty crashed 8 per cent on account of heavy FIIs’ selling.
None of the Indian ADRs listed on the US bourses ended last week on positive note. In fact, the average return posted by the 13 Indian counters saw even bigger slide at negative 8.9 per cent. Among them, the worst affected was Patni Computers, which fell by 15.1 per cent. It was followed by ICICI Bank (13.58 per cent), Sterlite Industries (13 per cent) and HDFC Bank (11.82 per cent). While HDFC Bank is scheduled to announce its quarterly number on Monday, ICICI Bank came out with impressive numbers on Saturday.
Among the Indian IT majors, Satyam Computer fell 3.96 per cent, Infosys Technologies by 5.28 per cent and Wipro (7.7 per cent). Though all the IT majors – Infosys Technologies, Wipro and TCS, came out with good results, Satyam Computer is announcing its quarterly financial performance numbers on Monday. Though Infosys and Wipro have come out with decent set of numbers, the market was not that impressed. It seems market players are keenly watching cues from the US, which faces recession threat.
The Dr. Reddy’s Lab ADR was the least affected as it fell by 3.8 per cent. The company announced the launch of Supanac (R) (Diclofenac potassium immediate release 50 mg tablets) in India. Supanac (R) is in-licensed from Applied Pharma Research, Switzerland, and is used for acute pain management. The company is coming out with its quarterly numbers on January 25.
The majority of the Indian ADRs are now ruling in discount. Only the ADRs of Patni Computers at 2.82 per cent, Satyam Computer (19.03 per cent) and Wipro (4.43 per cent) are ruling in premium with respect to the BSE close.
