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Indian ADRs shed nearly $3 bn in a week

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Press Trust of India New York
Last Updated : Jan 20 2013 | 1:24 AM IST

Indian stocks trading on American bourses witnessed a value erosion of nearly $3 billion last week, with IT major Wipro and HDFC Bank accounting for most of the total losses.

For the week ended October 29, the 15 Indian entities listed on the New York Stock Exchange and Nasdaq together shed $2.73 billion of their market capitalisation (m-cap), while the previous week they had lost $4.82 billion.

Thus, put together, Indian firms have lost about $7.55 billion in value within two weeks.

Of the 15 firms listed as American Depository Receipts, 7 have registered loss in their valuations last week, while the remaining 7 saw a gain in their m-cap. The valuation of IT major Patni Computer Systems remained unchanged.

ADRs are bought and sold on American markets just like stocks and are issued by a bank or a brokerage firm.

The market capitalisation of IT major Wipro plunged by $2.76 billion to a total of $34.98 billion, and the valuations of HDFC Bank decreased by $535 million to $26.5 billion.

In terms of gainers, private sector lender ICICI bank's m-cap boosted by $804 million to $30.16 billion and pharma major Dr Reddy's Laboratories' valuations surged $170 million to $6.39 billion.

Apart from Wipro and HDFC Bank, IT bellwether Infosys Technologies and outsourcing firm Genpact too witnessed a significant loss in their respective valuations.

Infosys' m-cap declined by $299 million to a total of $38.52 billion, while that of Genpact fell by $228 million to $3.49 billion.

The market capitalisation of Internet firm Rediff.Com, BPO company EXLService Holdings and telecom major Tata Communications was down by $7 million, $10 million and $53 million respectively.

Among the gainers, the valuations of Internet firm Sify Technologies, auto maker Tata Motors, BPO firm WNS Holdings, Mahanagar Telephone Nigam Ltd and copper producer Sterlite Industries increased in the range of $6 million to USD 97 million.

On Friday, the US markets ended mixed, with Dow Jones Industrial Average settling up by 4.54 points at 11,118.49 and S&P 500 fell by 0.52 points at 1,183.26. Besides, tech heavy Nasdaq was down 0.04 points at 2,507.41.

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First Published: Oct 31 2010 | 11:49 AM IST

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