New York: Indian stocks trading on American bourses added over $23 billion to their cumulative market capitalisation in September, with IT giants Wipro and Infosys accounting for more than half of the total gains.
American Depository Receipts (ADRs)are bought and sold on American markets just like stocks and are issued by banks or brokerage firms.
Indian entities listed on the New York Stock Exchange and Nasdaq added $23.31 billion to their market capitalisation in the last month.
IT majors stole the show with Azim Premji’s Wipro and software giant Infosys Technologies together contributing $12.4 billion to the total market capitalisation. The valuation of the former swelled by $6.22 billion to $38.31 billion while that of the latter grew by $6.17 billion to $40.27 billion.
The IT majors were followed by the private sector lenders ICICI Bank and HDFC Bank, which saw a jump of $7.75 billion in their collective wealth. ICICI Bank’s valuation surged by $4.53 billion to $29.19 billion and that of HDFC Bank increased by $3.22 billion to $28.48 billion during September.
Among the 16 firms trading as ADRs 12 ended the month on a positive note while the rest closed in a negative terrain.
The IT firm Mahindra Satyam, earlier known as Satyam Computer Services, whose ADRs will be delisted from NYSE on 14 October, emerged as the biggest loser with the wealth erosion of $445 million to $2.67 billion.
Apart from the gainers in the IT and banking pack, auto major Tata Motors saw a significant gain in its market capitalisation. The company’s m-cap soared by $1.65 billion to $11.51 billion.
Besides, drug firm Dr Reddy’s Laboratories gained $793 million to $5.72 billion in terms of m-cap. Outsourcing firm Genpact and copper producer Sterlite Industries went up by $757.53 million and $340.13 million, respectively.
Other ADR gainers were — internet firms — Rediff.com and Sify Technologies, BPO player EXLService Holdings and the telecom major Mahanagar Telephone Nigam, whose valuation increased in the range of $13 million to $87 million.
Other than Mahindra Satyam, the valuations of Tata Communications and Patni Computer Systems slipped by $169.52 million and $17.86 million, respectively. BPO firm WNS Holdings’ m-cap too saw a marginal value erosion of $0.43 million.
On Friday the US markets ended in the positive territory, with Dow Jones Industrial Average ending 41.63 points up at 10,829.68 and the S&P 500 settling up 5.04 points to 1,146.24. Besides, tech heavy Nasdaq was up 2.13 points at 2,370.75.