Nov. 1, 2009 (The Hindu Business Line) --
K.S.Badri Narayanan
US markets lost their winning momentum and turned sharply lower following data of weak consumer confidence and job market and sluggish spending. The Standard & Poor’s 500 index and the Nasdaq composite index ended with losses for October, breaking a streak of seven straight months of gains. While the Nasdaq slumped 5.08 per cent, S&P-500 crashed 4.02 per cent and the Dow Jones Industrial average slipped 2.6 per cent.
Back home, the fall was more severe. The BSE Sensex plummeted 5.44 per cent while NSE’s S&P CNX Nifty plunged 5.7 per cent.
Among ADRs, Dr. Reddy’s Lab managed to post sharp gains in downcast market condition. The ADR jumped 6.36 per cent at $21.73 against the previous week close of $20.43.
Patni Computer was the only other ADR to end the week on a positive note. It gained 1.16 per cent at $19.25 ($19.03) after a section of media reported that promoters may sell a stake. Net profit of Patni Computer Systems (NYSE:PTI) declined 32 per cent to Rs 103.52 crore in the quarter ended September 2009 as against Rs 152.95 crore reported during the quarter ended September 2008.
This week biggest loser was Tata Communications (NYSE:TCL) , whose ADR slumped 23.66 per cent at $15.23 ($19.95). The telecom major posted a 70-per cent drop in net profit to Rs 10.45 crore for the quarter ended September 30, 2009, from Rs 32.9 crore during the corresponding quarter a year ago.
MTNL, which also announced drop in net profit, slipped 12.35 per cent at $2.91 ($3.32).
The ADR of ICICI Bank (NYSE:IBN) was the second biggest loser, as it tumbled 18.65 per cent at $31.45 ($38.66) despite the bank announced decent set of numbers for the September quarter.
HDFC Bank ADR declined 6.66 per cent at $110.61 ($118.5).
Sterlite Industries fell 10.14 per cent at $15.77 ($17.55) while Wipro moved down by 5.1 per cent at $17.15 ($18.08) and Infosys slipped 5.3 per cent.
