ADRs gain $217 mn in a week on Wall St rise

ADRs gain $217 mn in a week on Wall St rise

New York: The cumulative valuation of the 16 Indian stocks trading on American bourses rose by $217 million last week, although a host of them witnessed a decline in their market capitalisation.

For the week ended 20 November, Indian entities listed on the New York Stock Exchange and Nasdaq added $217 million to their valuation, although the loss suffered by 10 companies eroded some of the gains posted by the remaining six entities.

As many as 10 companies, including private sector lender ICICI Bank and copper producer Sterlite Industries, together lost $1.27 billion from their market capitalisation.

IT major Wipro, which led the gains among the Indian stocks, saw its market capitalisation rising by $921 million to $30 billion last week.

Meanwhile, ICICI Bank was the major loser during the week. The company has witnessed a value erosion of $467 million to its valuation to $21.17 billion.

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

However, among the 16 companies which trades as American Depository Receipts (ADRs), private sector lender HDFC Bank was another major gainer with its valuation jumping by $288 million to $19.02 billion.

HDFC Bank is followed by IT bellwether Infosys Technologies, whose valuation increased by $206 million to $29.23 billion.

On the other hand, Sterlite Industries saw its market capitalisation falling by $242 million to $1.56 billion.

Apart from ICICI Bank, Sterlite Industries, IT firms-- Mahindra Satyam (earlier known as Satyam Computer Services) and Patni Computer Systems too witnessed a significant erosion to their valuations.

Mahindra Satyam’s valuation fell by $169 million to $3.46 billion, while Patni Computer Systems plunged by $159 million to $1.24 billion.

Outsourcing firm Genpact and telecom major Tata Communications Ltd’s market-cap declined by $87 million and $68 million respectively.

The other losers include--internet firms-- Sify Technologies, and, telecom major Mahanagar Telephone Nigam Ltd, pharma major Dr Reddy’s Laboratories, valuations slipped in the range of $5 million to $38 million.

While, auto maker Tata Motors’ market-capitalisation rose by $54 million, BPO companies-- WNS Holdings ($10 million), EXLService Holdings ($11 million).

On Friday the US markets ended in the negative zone, with Dow Jones Industrial Average ending down 14.28 points at 10,318.16 and the S&P 500 falling 3.52 points to 1,091.38.