Indian ADRs add $3 bn in a week; Infosys, Wipro top gainers

Indian ADRs add $3 bn in a week; Infosys, Wipro top gainers

New York: Indian stocks trading on American bourses added $3 billion to their cumulative market capitalisation, with IT icons Infosys Technologies and Wipro accounting for more than half of the total gains.

For the week ended 28 May, the 16 Indian entities listed on the New York Stock Exchange and Nasdaq composedly added $3 billion to their market capitalisation, with Infosys and Wipro together injecting $1.6 billion into the total valuation.

Wipro’s valuation jumped by $939 million to $31.04 billion, and the market capitalisation of Infosys increased by $650 million to $32.85 billion.

Infosys was followed by copper producer Sterlite Industries, whose market capitalisation went up by $428 million to $11.98 billion.

Among the 16 companies trading on American Depository Receipts (ADRs), six -- including IT firm Patni Computer Systems and telecom major Mahanagar Telephone Nigam Ltd (MTNL) -- witnessed an erosion in market capitalisation.

ADRs are bought and sold in American markets just like stocks and are issued by banks or brokerage firms.

Further, private sector lenders - HDFC Bank and ICICI Bank - collectively added $581 million to their valuations. HDFC Bank’s valuation rose by $336 million to $21.09 billion, while that of ICICI Bank grew by $245 million to USD 20.49 billion.

Apart from Infosys, Wipro, Sterlite Industries and HDFC Bank, BPO company Genpact and pharma major Dr Reddy’s Laboratories also saw substantial gains.

Dr Reddy’s Laboratories saw its valuations rising by $219 million to $4.84 billion while the market capitalisation of Genpact climbed by $214 million to $3.7 billion.

In addition, the valuations of automaker Tata Motors, IT firm Satyam Computer Services (earlier known as Mahindra Satyam) and telecom firm Tata Communications increased by $157 million, $141 million and $25 million respectively.

Meanwhile, Patni Computer Systems emerged as the biggest loser during the week. The company saw its valuation falling by $76 million to a total of $1.7 billion.

Other ADRs losers were Internet firms Sify Technologies and, outsourcing companies WNS Holdings and EXLService Holdings, and MTNL, whose valuations slipped in the range of USD 1 million to USD 16 million.

On Friday, US markets ended in the negative territory, with the Dow Jones Industrial Average ending down 122.36 points at 10,136.63 and the S&P 500 settling down 13.65 points at 1,089.41. Tech-heavy Nasdaq came down by 20.64 points to 2,257.04.