American Depository Receipts of Indian companies took wing on the NYSE on Friday following big bang reform measures announced by the Union government. Major Indian ADRs rose between 3% and 19% in early trade in New York after the announcements. Rediff.com was the top gainer with 18.86% gains as of 7.40 pm IST.
Heavyweights such as ICICI Bank, Tata Motors and Sterlite were big gainers between 5% to 10%, signalling another big day on Monday when the local markets reopen. Among the majors, Infosys rose the least at 2.87%.
The reform measures such as FDI in retail and aviation had been stalled for over a year as the government was unable to push through reforms. However, it has announced a series of measures cheering the markets and lifting the overall business mood.
R Balakrishnan, a Chennai based Investment Advisor said, “The measures are good. Retail needs huge investments. No Indian company has that kind of capacity. Some professions may go out of business. But overall, it is good for the common man as the goods will become cheaper.”
Sify Technologies ADR gained 5%.Experts said the government step to allow FDI in television distribution platforms will help companies operating in the segment. Edelweiss analysts said in a note: “Indian government has approved hike in FDI for all TV distribution platforms from 49% to 74%. This will provide a huge boost to digitisation. Now, the FDI cap will be uniform across various platforms like DTH, cable, Head-end In The Sky (HITS) and mobile TV.”
| In $ | Sep 13, 2012 | Sep 14, 2012 | % change | LAST_UPDATE |
| REDIFF.COM INDIA LIMITED-ADR | 3.87 | 4.60 | 18.86 | 7:42:58 PM |
| STERLITE INDUSTRIES INDI-ADR | 7.13 | 7.76 | 8.84 | 7:43:01 PM |
| TATA MOTORS LTD-SPON ADR | 23.96 | 25.57 | 6.70 | 7:42:56 PM |
| ICICI BANK LTD-SPON ADR | 36.38 | 38.51 | 5.86 | 7:42:52 PM |
| SIFY TECHNOLOGIES-SPON ADR | 2.60 | 2.73 | 5.00 | 7:42:57 PM |
| TATA MOTORS LTD-SPON ADR | 18.39 | 19.28 | 4.84 | 7:32:54 PM |
| WIPRO LTD-ADR | 8.67 | 9.01 | 3.92 | 7:42:47 PM |
| MAHANAGAR TELEPHONE-ADR | 1.45 | 1.50 | 3.45 | 7:33:47 PM |
| HDFC BANK LTD-ADR | 36.17 | 37.36 | 3.29 | 7:43:02 PM |
| TATA COMMUNICATIONS-ADR | 8.84 | 9.12 | 3.17 | 7:40:34 PM |
| INFOSYS LTD-SP ADR | 47.33 | 48.69 | 2.87 | 7:43:00 PM |
| IGATE COMPUTER SYSTEMS LTD | 18.62 | 18.95 | 1.77 | 7:41:07 PM |
| WNS HOLDINGS LTD-ADR | 10.58 | 10.65 | 0.66 | 7:42:33 PM |
| DOCTOR REDDY'S LAB-ADR | 32.58 | 32.25 | -1.01 | 7:42:58 PM |
| Source Bloomberg Compiled by BS Research Bureau | ||||
