Date:11/08/2008 URL: http://www.thehindubusinessline.com/2008/08/11/stories/2008081150840400.htm

Back ICICI Bank, HDFC Bank sizzle at US bourses

Our Bureau

Chennai, Aug. 10 US stocks saw sharp rally last week as crude retreated quite sharply.

The S&P 500 added 2.9 per cent, the Dow Jones Industrial Average jumped 3.6 per cent to 11,734.32 and the tech-focussed Nasdaq skyrocketed by 4.5 per cent. It was the best week for all three indices since April 20.

Crude prices softening and positive global cues helped the domestic bourses, too. The 30-share Bombay Stock Exchange flared up 3.49 per cent and the broader S&P CNX Nifty of the National Stock Exchange gained 2.63 per cent.

Banking ADRs ICICI Bank and HDFC Bank were the star performers among the Indian counters that were listed on the US bourses. While the former gained 15.8 per cent, the latter jumped 15.6 per cent. Expectations of financial sector reforms by the Indian Government coupled with easing worries over the sector across the globe pushed up the banking counters world over.

Information technology counters also ended on positive note with biggest gainers among them being Patni Computers. Infosys Technologies finished with a gain of 2.6 per cent and Satyam Computer jumped 4 per cent while Wipro closed flat at $11.45 against the previous week close of $11.44.

The other counter to post sharp gains was Tata Motors, whose ADR climbed 9.5 per cent at $10.42 ($9.52), thanks to softening of crude prices.

Telecom majors Tata Communications (erstwhile VSNL) and MTNL also scored impressive gains with the former moving up two per cent and the latter by 7.8 per cent.

Among the losers was Dr. Reddy’s Lab, whose ADR declined by 2.7 per cent at $15.83 ($16.27). In fact, the pharma major’s promoters group firm, Dr Reddy’s Holdings Ltd, increased its stake from 22.92 per cent to 23.75 per cent through secondary market purchases last week.

However, the week’s biggest losers were Internet majors Rediff.com and Sify. While the former tumbled 4.8 per cent at $5.93 ($6.23), the latter crashed by 12.6 per cent at $2.78 ($3.18). It may be mentioned here that these counters have been witnessing sharp gains in recent times.