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Journalism of Courage
MUMBAI, MAR 6: The combined effect of a capital market-friendly budget and a reduction in interest rates by the Reserve Bank of India (RBI) saw the global depository receipts (GDR) market also sway to the tunes of the domestic market and the Skindia GDR Index moved up by a substantial 64.34 points for the week ended March 5 to close at 643.64 points up from its previous week close of 579.30 points.
The Skindia GDR Index price to earnings multiple also propelled by 10.24 per cent to close the week at 25.91 from its previous close of 23.51. The Skindia GDR Index premium improved by 10.56 per cent to close the week at 14.38 per cent from its previous close of 13.01 per cent. "The markets have reacted positively to the Union budget and the interest rate cuts prompted by the cut in rates by RBI, has led the markets into a bullish mood," said a BSE broker.
During the week ended March 5, the BSE-30 Sensitive Index (Sensex) also gained 320.67 points to close at 3,601.96 from its previous week close of 3,281.29, up by 9.77 per cent. Due to the increased activity on the bourses, the average spreads of 37 most actively traded GDRs narrowed to 9.14 per cent on March 4 from 9.32 per cent on February 25, and the average premiums of the 61 GDRs moved up to 4.87% from 3.08% during the same period. As compared to the GDR market, the top gainers in the underlying market were State Bank of India (SBI) which gained 19.93 %, Core Healthcare which gained 19.42 % and ITC which went up by 18.80%. While the top losers in the underlying shares lost 20.84 %, Arvind Mills which shaved off 20.40%.
