Indian ADRs shed $4.82bn; Wipro, HDFC top losers

Indian ADRs shed $4.82bn; Wipro, HDFC top losers

New York: Indian stocks trading on American bourses collectively witnessed the erosion of nearly $5 billion in valuation last week, with IT major Wipro and private sector lender HDFC Bank accounting for most of the losses.

In the week ended 22 October, the 15 Indian entities listed as American Depository Receipts (ADRs) together lost $4.82 billion from their market capitalisation (m-cap).

ADRs are bought and sold on American markets just like stocks and are issued by a bank or a brokerage firm.

Wipro’s ADRs shed a whopping $2.91 billion, reducing its total market capitalisation to $37.75 billion. Similarly, private sector lender HDFC Bank lost U$1.27 billion to $27.04 billion.

Among the 15 Indian entities listed on the New York Stock Exchange and Nasdaq, only four of them —including auto giant Tata Motors and drug-maker Dr Reddy’s Laboratories — saw gains in their market capitalisation.

Tata Motors was the biggest gainer, adding $355.44 million to take its m-cap to $12.57 billion, while pharma giant Dr Reddy’s Laboratories’ valuation grew by $84.66 million to $6.22 billion.

Among the other gainers were Mahanagar Telephone Nigam and BPO firm WNS Holdings, which saw their m-cap grow by $31.50 million and $5.71 million, respectively.

Meanwhile, IT bellwether Infosys Technologies witnessed a $372 million erosion in m-cap to $38.82 billion, while ADRs of outsourcing firm Genpact lost $283.44 million to $3.72 billion.

Copper producer Sterlite Industries saw its valuation decline by $191.44 million to $3.21 billion, while telecom major Tata Communications’ m-cap decreased by $125 million to $2.03 billion.

Other Indian entities listed as ADRs on American bourses that witnessed losses include IT firm Patni Computer Systems, BPO company EXL Service Holdings and Internet firms Sify Technologies and These valuation of these firms slipped in the range of $0.56 million to $62 million during the week ended 22 October.

On Friday, the US markets ended in the red, with the Dow Jones Industrial Average settling 14.01 points lower at 11,132.56 and the S&P 500 rising by 2.82 points to 1,183.08. The tech-heavy Nasdaq was up 19.72 points at 2,479.39.