India-focus MNCs, ADRs to rally further: S&P

Global equity research firm Standard & Poor's has projected a significant jump in the American depository receipts (ADRs) of select Indian companies and share prices of US-based multinationals with significant India exposure despite the recent slump in the indian stock market.

Indian IT majors Wipro and Satyam are likely to see a jump of 33% and 44% respectively in their ADRs over the next one year, says the S&P equity research report released recently.

Satyam and Wipro are among highly-ranked Indian companies that trade as ADRs in the US and US-based MNCs with significant Indian operations, all of which are expected to show material stock price appreciation over the next 12 months, the S&P report said.

"We project that India's economy will grow at least 7% annually for the foreseable future...Due to prosperous information technology, growth of consumerism and concurrent investment in infrastructure," the S&P report said.

S&P expects Satyam's ADR price to jump to $46, from $32 currently, while Wipro's price is likely to rise from $12 to $16 in the next one year.

"The climate remains favourable for stocks of select outfits servicing geographies where strong growth is likely to continue, the S&P report said.