New York: Indian companies listed on the US bourses added a whopping $8 billion in combined market capitalization (m-cap) last week, with IT and financial stocks emerging as the best performers.
An analysis of the market capitalization of 16 Indian entities that are listed on the US stock exchanges in the form of American Depository Receipts (ADRs) shows these firms gained $8 billion for the week ended 10 September, while prior to that week they had gained $6 billion.
“The outstanding quarterly results by the IT companies, including TCS, are the major booster behind the upsurge. The rise is a clear reflection of the good performance at the local bourses as well,” Ashika Stock Brokers research head Paras Bothra said.
IT bellwhether Infosys Technologies was the biggest gainer witnessing a surge of $2.46 billion to its total m-cap of $35.59 billion.
The market capitalization of Mahindra Satyam rose $491 million to $3.52 billion, while Wipro’s grew by $343 million to $32.38 billion.
Apart from the IT sector, the maximum gain was seen in private sector banking giants ICICI Bank and HDFC Bank, which together contributed $3.2 billion in their valuation.
While ICICI Bank jumped $2.28 billion to $25.40 billion, HDFC Bank saw m-cap rise of $924 million to a total of $25.58 billion.
In the past week, out of the 16 companies, 14 settled with gains and the rest two ended with losses. ADRs are traded in the US markets just like stocks and are issued by a bank or a brokerage firm.
Pharma major Dr Reddy’s Laboratories m-cap climbed $351 million to $5.18 billion. Another major gainer that ended in green was an auto outsourcing firm Genpact, whose valuation went up $331 million to $10.68 billion.
In addition, valuations of auto major Tata Motors and copper producer Sterlite Industries witnessed an upsurge of $301 million and $210 million, respectively.
However, the gains in the Indian ADRs were offset by loss registered by software exporter Patni Computer Systems and BPO firm WNS Holdings.
Patni Computer’s fell by $40 million, while WNS Holdings’ valuations slipped by nearly $1 million.
Meanwhile, other gainers were - Internet firms Sify Technologies and Reddif.com, telecom majors Tata Communications and Mahanagar Telephone Nigam Ltd, and BPO company EXLService Holdings, whose valuations increased in the range of $17 million to $57 million.
Broader markets were positive for the second consecutive week, with the Dow Jones Industrial Average gaining by 0.14%, Nasdaq rising 0.39% and S&P adding 0.45%.
On Friday, the US markets ended in the green, with the Dow Jones Industrial Average surging by 0.46% to 10,462.77 and the S&P 500 rising 0.49% to 1,109.55. The Nasdaq closed 0.28% higher at 2,242.48.