Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Tech ADRs: Out of favour - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Apr 14, 2001

    Tech ADRs: Out of favour

    The mood in the US markets finally looked up and the feel good factor seems to be back. Both the NASDAQ and Dow rallied after a heavy sell off in the last one-month. Optimism about corporate earnings and fresh economic data boosted the sentiment on the Wall Street.

    On the corporate front, outlook was mixed. The retailing giant Amazon.com expected revenues of $695 million and loss of $225 million for the first quarter. This loss, which is smaller than projected by the markets helped improve sentiment. The surge in the markets was also sparked by an upgrade in rating of the telecom sector by one of investment banker. Motorola however cast a shadow on the rally by recording a loss after 15 years, which was higher than expected. It has also forecasted a disappointing outlook for the second quarter. In the next week more results are expected to come from the tech majors, which would decide the future trend in the markets.

    The US economy is showing signs of sliding into recession. This was confirmed by fall in March retail sales and consumer sentiment index. Also, weekly jobless claims were the highest in five years. Nevertheless, the markets considered this data as positive for the Fed to cut interest rates aggressively.

    Sify sparkles
    (Price in $) 7-Apr-01 13-Apr-01 Change
    Satyam Infoway 2.8 3.1 10.1%
    VSNL 12.0 12.7 6.0%
    Rediff 2.6 2.7 4.4%
    ICICI Bank 7.3 7.1 -2.2%
    ICICI 11.1 10.5 -4.7%
    Infosys 60.2 56.5 -6.1%
    Silverline 3.4 3.1 -10.0%
    Wipro 28.5 23.8 -16.4%
    Dr. Reddy's - 10.2 -

    Indian ADRs gained selectively. Internet stocks - Sify and Rediff gained smartly. VSNL was also up by 6% over a week on the expectation of speeding up of the divestment process.

    Infosys led the downfall in the tech ADRs. The company declared double digit growth in revenues and profits for the year ended March ’01. However, its indication of a marginal 30% growth in the coming year led to a significant sell off in the tech counters. Wipro and Silverline were the other major losers.

    During the week, the Indian pharma major Dr. Reddy’s listed on the NYSE at a slight premium of 1% compared to its domestic price. The company has raised US $132.8 million (Rs 6.2 bn) through ADS issue. The proceeds of the issue will be used partly to finance clinical research activities and partly for acquisitions of companies and brands in the related area. Dr. Reddy’s has also obtained the final approval fro the US Food and Drugs Administration (USFDA) for the abbreviated new drug application (ANDA), filed by it for the launch of oxaprozin in the US markets.

    The coming week is crucial for the US markets and Indian ADRs as some of the tech majors are expected to announce their quarterly results. It remained to be seen whether the up trend in the markets is sustained.

    Sliding Sensex
    Indices 7-Apr-01 13-Apr-01 Change
    NASDAQ 1,720 1,961 14.0%
    Dow 9,791 10,127 3.4%
    Hang Seng 12,387 12,989 4.9%
    Nikkei 13,384 13,386 0.0%
    BSE 3,576 3,184 -11.0%



    Equitymaster requests your view! Post a comment on "Tech ADRs: Out of favour". Click here!


    More Views on News

    Tejas Networks Ltd. (IPO)

    Jun 14, 2017

    Should you subscribe to the IPO of Tejas Networks Ltd?

    Discover the Secrets of Hidden Smallcaps From These AGMs (The 5 Minute Wrapup)

    May 26, 2017

    Don't be surprised to come across some Super Investors there!

    A Trader's Nightmare. A Business Owner's Delight. (The 5 Minute Wrapup)

    May 19, 2017

    Not all small-cap investors see themselves as traders. Some see themselves as business owners.

    Securities & Intelligence Services Ltd. (IPO)

    Jul 31, 2017

    Should you subscribe to the IPO of Securities & Intelligence Services Ltd?

    Why Super Investors are Underperforming in This Market (The 5 Minute Wrapup)

    Jul 8, 2017

    If Super Investors can wait for the right pitch, so can you.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms