Indian ADRs surge - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Indian ADRs surge

Jan 20, 2001

The NASDAQ gained more than 5% last week on the back of strong buying interest in technology stocks. Better than expected quarterly performance by IBM, Juniper Networks, Microsoft, Nortel and eBay led the rally in tech stocks. The gain was despite the earnings warnings issued by major companies, which included Intel and Apple Computers. However, negative news on the economy caused weakness in the markets. Economic data indicated that business inventories rose more than expected in November as sales softened for the second consecutive month. Also, the US consumer confidence index tumbled in January reaffirming a slow down in the economy.

Comparative performance
(Price in $) 13-Jan-01 20-Jan-01 Change
Infosys 112.9 124.8 10.5%
Satyam Infoway 6.9 7.1 2.7%
Rediff 3.4 5.5 63.0%
Silverline 9.4 9.7 3.3%
VSNL 13.8 14.4 4.5%
ICICI Bank 6.8 9.0 32.1%
ICICI 11.7 11.8 1.1%
Wipro 55.0 63.1 14.8%

Indian ADRs surged on the back of strong quarterly earnings of technology companies. The star of the week was Rediff. The stock gained more than 60% over a week after it reported a 31% surge in revenues and expects to turn profitable within a year. It does not foresee a slowdown in advertising revenues, which currently contributes around 90% to total income (balance from e-commerce). Remarkably, the company’s marketing expenses dropped by 22% while page views soared to 670 m (up by 69%) quarter on quarter. Rediff is still trading at a discount of more than 50% compared to its issue price. Another Internet stock Sify witnessed selling pressure at higher levels after gaining 39% in the last week. It however, gained 3% towards the end of week with large volumes.

ICICI Bank and Wipro also gained smartly. The buying interest in Wipro was fueled by spectacular quarterly performance of the company. The company has recorded a YoY growth of 120% in profits and 36% in revenues. The risk from dot com revenues is minimum as the segment contributed a marginal 1.5% to total revenues for the quarter ended December 2000. Wipro’s ADR is trading in line with its domestic price. Among the others Infosys continued its rally for the second consecutive week.

VSNL also attracted some buying support on the increasing talks of disinvestments. The company is considering the strategy of entering into the cellular business as a means of generating additional revenues. This will be required as post March 2002, its monopoly over international telephony ends. The stock lost its sheen in the last two days of the week on selling pressure.


Equitymaster requests your view! Post a comment on "Indian ADRs surge". Click here!

  

More Views on News

JUST DIAL Share Price Down by 5%; BSE 500 Index Down 2.3% (Market Updates)

Sep 24, 2020 | Updated on Sep 24, 2020

JUST DIAL share price is trading down by 5% and its current market price is Rs 361. The BSE 500 is down by 2.3%. The top gainers in the BSE 500 Index are APOLLO HOSPITALS (up 6.7%) and GSK CONSUMER (up 5.1%). The top losers are JUST DIAL (down 5.1%) and BAJAJ FINANCE (down 5.6%).

ORIENT ELECTRIC Share Price Down by 5%; BSE 500 Index Down 2.0% (Market Updates)

Sep 24, 2020 | Updated on Sep 24, 2020

ORIENT ELECTRIC share price is trading down by 5% and its current market price is Rs 187. The BSE 500 is down by 2.0%. The top gainers in the BSE 500 Index are APOLLO HOSPITALS (up 6.1%) and GSK CONSUMER (up 5.1%). The top losers are ORIENT ELECTRIC (down 5.3%) and BAJAJ FINANCE (down 5.0%).

ADANI GAS Share Price Down by 5%; BSE 500 Index Down 1.9% (Market Updates)

Sep 24, 2020 | Updated on Sep 24, 2020

ADANI GAS share price is trading down by 5% and its current market price is Rs 184. The BSE 500 is down by 1.9%. The top gainers in the BSE 500 Index are GSK CONSUMER (up 5.1%) and APOLLO HOSPITALS (up 4.5%). The top losers are ADANI GAS (down 5.0%) and LAURUS LABS LTD (down 6.6%).

PNC INFRATECH Share Price Down by 6%; BSE 500 Index Down 1.3% (Market Updates)

Sep 24, 2020 | Updated on Sep 24, 2020

PNC INFRATECH share price is trading down by 6% and its current market price is Rs 151. The BSE 500 is down by 1.3%. The top gainers in the BSE 500 Index are PRESTIGE ESTATES (up 5.7%) and GSK CONSUMER (up 5.1%). The top losers are PNC INFRATECH (down 5.7%) and GALAXY SURFACTANTS LTD (down 7.8%).

AVANTI FEEDS Announces Quarterly Results (1QFY21); Net Profit Up 14.1% (Quarterly Result Update)

Aug 28, 2020 | Updated on Aug 28, 2020

For the quarter ended June 2020, AVANTI FEEDS has posted a net profit of Rs 1 bn (up 14.1% YoY). Sales on the other hand came in at Rs 10 bn (down 12.6% YoY). Read on for a complete analysis of AVANTI FEEDS's quarterly results.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

5-YR ANALYSIS

COMPARE COMPANY

MARKET STATS