The uptrend, which started on May 30 in the GDR market
continued unabated with the Skindia GDR Index touchingl@t 52-
week high of 83.69 on June 20.
The rally lost steam in the sequent days mainly on lack of trading
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interest in the GDR market, resulting in declining volumes.
However, the announcement of a 1:1 bonus bk Reliance enthused
market operators and saw the Sldndia GDR Index edging up from
81.22 to close at 82.03.
The BSE Sensex touched its 52-week high of 4148.99 in intra-
day trading on June 26 and the NSE clocked record volumes of Rs
3080.61 crore on the same day. Reliance's share price shot up
to its 52-week high of Rs 388 on the Bombay Stock Exchange and
Rs 390 on the National Stock Exchange, while its GDR gained
3.30 per cent to $23.50.
Declining occupancy levels resulted 'in lower growth in net
proft of the hotel industry in 1996-97.
Net profit of Indian Hotels increased 4.49 per cent to Rs
146.88 crore as compared with a growth of 71.20 per cent in
1995-96. East India Hotels' net profit increased 14.95 per cent
to Rs 138.12 crore as against a growth of 106.96 per cent in the
previous year. Oriental Hotels reported a net profit growth of
23.05 per cent to Rs 25.89 crore as compared with 155.96 per cent
in the previous year.
During the last six months, despite the Skindia GDR Index and the
Bombay Stock Exhange Sensitive Index having gained 24.65 per cent
to 82.03 and 33.43 per cent to 4116.56 respectively, GDRs from
the hotel industry have fallen an average 2.93 per cent and their
underlying shares by 4.05 per cent.
On announcement of the results, the GDRs of Indian Hotels and
EIH Ltd fell 3.59 per cent to $23.38 and 1.43 per cent to $17.25
respectively and their underlying shares fell 1.10 per cent to
Rs 631 and 0.06 per cent to Rs 431 respec-tively.
During the week, 16 GDRs gained over their previous weeles
closing levels, 31 remained unchanged while 17 fell from their
previouslevels.
Among the top gainers of the week were Core Parental, which
moved from $0.65 to $1(+ 53.85 per cent), Fmolex Cables which
firmed up to $4.75 from $4.13(+ 15.01 per cent) and IPCL which
moved up from $13 to $14.63, a gain of 12.54 per cent.
Among the top three losm of the week were EIH Hotels, which
slipped from $18.75 to $16.88, Videocon International from $1.
60 to $]..45 and Indo Gulf Fertilisers which fell from $1.30 to
$1.20.
Among companies planning GDR issues, IFCI has drawn up plans
for a $150 million issue while Herdilla Chemicals is con-
templating one to part finance its Rs 750-crore greenfield phenol
project at Dahei in Gujarat
Hindustan Sanitaryware & Industries Ltd plans to float a $25
million GDR issue subject to govermnent clearance.