BackIndian ADRs add $5.12 bn in a week
Indian ADRs add $5.12 bn in a week
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New York: Indian stocks trading on American bourses added over $5.12 billion to their cumulative market capitalization during the week ended 24 September, but IT major Mahindra Satyam saw its wealth decline by $304 million to $3.15 billion.
Indian entities listed on the New York Stock Exchange and Nasdaq added $5.12 billion to their market capitalization, with Mahindra Satyam emerging as the only player that saw a decline in its m-cap to $3.15 billion.
On Friday, the company said it will delist from the New York Stock Exchange on 14 October, citing its inability to comply with US norms, following which its shares plunged by as much as 24% to $4.64 a piece on the NYSE.
ADRs are traded on American bourses like stocks and are issued through banks or brokerage firms.
Out of 16 Indian ADRs, listed on the New York Stock Exchange and Nasdaq, barring Mahindra Satyam all the others ended the week on a positive note, with IT giants Wipro and Infosys Technologies contributing the majority of the gains, collectively adding $3.18 billion to their total valuation.
The m-cap of Wipro soared by a whopping $2.15 billion to $36 billion, while IT bellwether Infosys Technologies saw its valuation surge by $1.03 billion to $38.19 billion.
In addition, private sector lender ICICI Bank added $791 million to take its m-cap to $27.43 billion. Similarly, auto major Tata Motors valuation rose by $436 million to $10.92 billion.
Among the other major ADRs that saw an impressive upswing last week were HDFC Bank and Dr Reddy’s Laboratories. While the m-cap of the private sector lender increased by $307 million to $28 billion, the drug firm’s valuation jumped by $257 million to $5.59 billion.
Outsourcing major Genpact saw a smart surge of $173 million and copper producer Sterlite Industries rose by $128 million.
Furthermore, the valuation of Internet firm Rediff.com and telecom giant Mahanagar Telephone Nigam Ltd (MTNL) swelled by $45 million and $41 million respectively.
Other ADRs that ended the week on a strong note include Patni Computer Systems, Sify Technologies, EXL Service Holdings, WNS Holdings and Tata Communications, which gained in the range of $1 million to $24 million.
On Friday, the US markets ended in the positive territory, with the Dow Jones Industrial Average up 1.86% to 10,860.26 and the S&P 500 rising 2.12% to 1,148.67. The Nasdaq closed 2.33% higher at 2,381.22.
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