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Indian ADRs shed $5 bn in market valuation last week

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Press Trust of India New York
Last Updated : Jan 19 2013 | 11:54 PM IST

Indian stocks listed on American bourses saw a market value erosion of over $5 billion in just one week, with copper producer Sterlite Industries and IT major Wipro together accounting for more than half of the total losses.

The 16 Indian shares trading on the New York Stock Exchange and the Nasdaq witnessed their cumulative market capitalisation tumble $5.26 billion for the week-ended June 19.

Among the entities listed as American Depository Receipts (ADR), Sterlite Industries and Wipro, together lost little over $3 billion. Sterlite's market capitalisation dropped by $1.70 billion whereas that of Wipro declined by $1.36 billion.

Out of the 16 companies, only four managed to add to their respective market valuations. They are outsourcing firms, Genpact and WNS Holdings, pharma major Dr Reddy's Laboratories and IT entity Patni Computer Systems.

Apart from Sterlite Industries and Wipro, other major losers during the week were private sector lender HDFC Bank and IT bellwether Infosys. While HDFC Bank's market capitalisation nosedived by $729 million, the valuation of Infosys fell by $555 million.

Interestingly, for the week-ended June 12, the 16 ADRs recorded a gain of $3 billion in their market capitalisation.

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Besides, another private sector lender ICICI Bank and auto maker Tata Motors saw their market value drop by $325 million and $306 million, respectively.

During the week ended June 19, there were mixed trends in the American markets amid increasing hopes about an early economic revival. The optimism was enhanced by the official data showing that the number of Americans receiving unemployment benefits came down for the week ended June 6.

On the other hand, the four gainers, Genpact, Dr Reddy's Laboratories, WNS Holdings and Patni Computer, gained in the range of $27 million to $161 million. The market capitalistion of Genpact and Dr Reddy's Laboratories climbed by $161 million and $108 million, respectively. WNS Holdings' valuation went up by $44 million and that of Patni Computer rose by $27 million.

Telecom entities Mahanagar Telephone Nigam (MTNL) and Tata Communications together lost $570 million in market valuations. MTNL had a decline of $295 million whereas the market capitalisation of Tata Communications decreased by $275 million.

The remaining ADRs, tainted Satyam Computer Services, internet firms Sify Technologies and Rediff.com and BPO entity EXLService Holdings, saw their respective valuations decline between $6 million to $16 million.

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First Published: Jun 21 2009 | 2:37 PM IST

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