Business IdeasIndian ADRs gain $10 bn in a week
Indian stocks trading on American bourses added about $10 billion to their combined market valuation past week, with IT major Wipro accounting for $2.65 billion to the total gain.
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For the week ended November 13, most of the Indian entities listed on the New York Stock Exchange (NYSE) and Nasdaq added $10 billion to their market capitalisation.
Wipro, which led the gains among the Indian stocks, saw its market capitalisation rise to $29.08 billion last week.
Among the 16 companies which trade as American Depository Receipts (ADRs), IT firm Infosys Technologies was another major gainer with its valuation jumping to $29.02 billion past week from $1.75 billion a week ago.
The two big private lenders -- HDFC Bank and ICICI Bank -- together added $3.26 billion to their valuation. HDFC Bank"s valuation rose by $1.66 billion to $18.73 billion, while that of ICICI Bank grew by $1.60 billion to $21.64 billion.
Apart from the IT icons and the private sector lenders, copper producer Sterlite Industries too saw a significant addition to its market cap. The company"s valuation rose by $1.21 billion to $15.9 billion.
ADRs are bought and sold on American bourses just like stocks and are issued by banks or brokerage firms.
The market cap of auto maker Tata Motors increased by $679 million to $6.14 billion, while the valuation of pharma firm Dr Reddy"s Laboratories moved up by $206 million to $4.09 billion.
However, during the week, BPO company Genpact was the biggest loser witnessing a value erosion of $47 million. Outsourcing firm EXLService Holdings and Internet company Reddif.com were the entities which saw value erosion.
Among other ADRs gainers Internet firm Sify Technologies, BPO company WNS Holdings, telecom companies Tata Communications and Mahanagar Telephone Nigam, IT firms Mahindra Satyam (earlier known as Satyam Computer Services) and Patni Computer Systems increased in the range of $4 million to $94 million.
On Friday, the US markets ended in the positive zone, with Dow Jones Industrial Average settling up 73 points at 10,270.47 and the S&P 500 rising 6.24 points to 1,093.48. Besides, tech heavy Nasdaq was up 18.86 points at 2,167.88.