Gulf crisis rattles GDRs, index down 7.96%

MUMBAI, Dec 19: The US attack on Iraq led to panic selling at the GDR (global depository receipts) markets last week, bringing the Skindi...

MUMBAI, Dec 19: The US attack on Iraq led to panic selling at the GDR (global depository receipts) markets last week, bringing the Skindia GDR Index down by 7.96% to close at 524.49 points on December 17.

Between December 10 and December 17, the Skindia GDR price-earnings index dipped by 7.81% to close at 14.73 points. The average premium of the 60 GDRs fell to 7.12% from 7.21%, while the average spreads of 37 most actively traded GDRs widened to 9.47% from the earlier levels of 9.13% witnessed on Dec 10.

Although the local markets found support towards the lower end to rebound to 2,900 points, the Skindia GDR Index continued its downward move for three consecutive sessions. Mirroring the negative sentiment of players at the GDR markets, the Skindia GDR premium index nosedived by 26.99% to close at 13.47%. However, the 60 GDRs lost an average 3.04%, while their underlying stocks fell by 3.12%. The GDRs of VSNL and MTNL continued to be traded at a premium of 29.89% and 29.05% respectively.

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Among theGDRs, pharma and cement sector GDRs bucked the trend and registered a smart recovery despite the lacklustre sentiment at the GDR markets. While pharma sector GDRs gained 2.24%, those from the cement sector gained 1.83%.

The top losers were GDRs of telecom, hotel and aluminium sectors, which fell by 9.02%, 8.37% and 7.20%, respectively. The steel sector GDRs remained unchanged. Among the underlying stocks, the cable and cement sector GDRs appreciated by 3.31per cent and 1.08%, respectively. Among the GDRs, pharma and cement sector GDRs bucked the trend and registered a smart recovery despite the lacklustre sentiment at the GDR markets.