The past week has turned out to be rather disappointing for Indian ADR’s. Indian stock trading on the American bourses witnessed a sharp decline shedding close to $3 Bn over the week.
The list of top losers amongst the 16 listed Indian ADRs for the week ending June 25,
|Company||Current Market Cap||Reduction in Market Cap|
|Wipro||$30.82 Bn||$1.6 Bn|
|Infosys||$35.58 Bn||$626 Mn|
|HDFC Bank||$22.4 Bn||$426 Mn|
|ICICI Bank||$20.92 Bn||$301 Mn|
|Genpact||$3.55 Bn||$212 Mn|
Pharma company ADRs witnessed an increase in their market cap especially Dr. Reddys Laboratries
Automobile major Tata Motors also witnessed smart gains and even Tata Communications managed to stay out of red
Mahindra Satyam surprisingly managed to stay in Green and saw it market cap rise by $88 Mn
A spoilt party for IT companies : With the exception of Mahindra Satyam, almost all major listed IT companies saw a sharp decline in their market capitalization. A little surprising since the market forecasts have been upped for IT services and there has been a flurry of new big ticket IT contracts in the year already
The week saw both DOW JONES and NASDAQ closing in the green albeit by a very small margin.The market has been really harsh on the Indian IT stocks this week.
It will be interesting to see if the sudden downside will create possible buying opportunities in Indian ADRs leading their revival this week. If anything, the performance of Indian ADRs is going to reflect in the Indian Stock Markets too one way or the another.
What do you think could have prompted the sharp decline of Indian ADRs in the week gone by?