GDRs improve on buy-back

MUMBAI, NOV 7: After a relatively dull previous week, the Skindia GDR index for the week ended November 5, improved by 27.52 points to finish the week at 550.12 up from its previous close of 522.60. This week saw some buying interest in the GDR market mainly fuelled by buyback announcements when compared to the domestic market.

The Skindia GDR was up 5.27 per cent at 550.12 from 522.60 on October 29. The Skindia GDR Index P/E was up from 14.56 to 15.31 on November 5. During the same period, Skindia GDR index Premium rose from 8.99 per cent to 16.35 per cent on November 5.

As the GDRs market raced ahead of the domestic markets, the average premiums increased from 1.74 per cent on October 29 to 6.59 per cent on November 5. The average spreads were marginally higher from 10.25 per cent on October 29 to 10.48 per cent on November 5.The top gainers in the GDR category were JCT Ltd which saw its price rise from $ 0.75 to $ 1 a rise of 33.33 per cent, Raymond Woollen rose from $ 2.98 to $ 3.50 up 17.65 percent.