Indian ADRs add USD 8 bn in a week; IT, banking stocks shine

An analysis of the market capitalisation of 16 Indian entities that are listed on the US stock exchanges in the form of American Depository Receipts (ADRs) shows these firms gained USD 8 billion for the week ended September 10, while prior to that week they had gained USD 6 billion.

"The outstanding quarterly results by the IT companies, including TCS are the major booster behind the upsurge. The rise is a clear reflection of the good performance at the local bourses as well," Ashika Stock Brokers Research Head Paras Bothra said.
IT bellwhether Infosys Technologies was the biggest gainer witnessing a surge of USD 2.46 billion to its total market capitalisation of USD 35.59 billion.
The market capitalisation of Mahindra Satyam (earlier known as Satyam Computer Services) rose USD 491 million to USD 3.52 billion, while Wipro's grew by USD 343 million to USD 32.38 billion.

Apart from the IT sector, the maximum gain was seen in private sector banking giants ICICI Bank and HDFC Bank, which together contributed USD 3.2 billion in their valuation.
While ICICI Bank jumped USD 2.28 billion to USD 25.40 billion, HDFC Bank saw m-cap rise of USD 924 million to a total of USD 25.58 billion.
In the past week, out of the 16 US-listed Indian companies, 14 settled with gains, while two ended with losses. ADRs are traded in the US markets just like stocks and are issued by a bank or a brokerage firm.

Pharma major Dr Reddy's Laboratories market capitalisation climbed USD 351 million to USD 5.18 billion. Another major gainer that ended in green was an auto outsourcing firm Genpact, whose valuation went up USD 331 million to USD 10.68 billion.

In addition, valuations of auto major Tata Motors and copper producer Sterlite Industries witnessed an upsurge of USD 301 million and USD 210 million, respectively.
However, the gains in the Indian ADRs were offset by loss registered by software exporter Patni Computer Systems and BPO firm WNS Holdings.
Patni Computer's fell by USD 40 million, while WNS Holdings' valuations slipped by nearly USD 1 million.

Meanwhile, other gainers were--internet firms Sify Technologies and, telecom majors Tata Communications and Mahanagar Telephone Nigam Ltd and BPO company EXLService Holdings, whose valuations increased in the range of USD 17 million to USD 57 million.

Broader markets were positive for the second consecutive week, with the Dow Jones Industrial Average gaining by 0.14 per cent, Nasdaq rising 0.39 per cent and S&P adding 0.45 per cent.

On Friday, the US markets ended in the green, with the Dow Jones Industrial Average surging by 0.46 per cent to 10,462.77 and the S&P 500 rising 0.49 per cent to 1,109.55.
The Nasdaq closed 0.28 per cent higher at 2,242.48.

DH Newsletter Privacy Policy Get top news in your inbox daily
Comments (+)