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K.S. Badri Narayanan

THE US market maintained its upward momentum for the straight fourth week, as investors seemed to have indulged in value buying.

Following their optimism, the Dow Jones Industrial Average closed last week with a gain of 0.4 per cent at 8778.06 against the previous week close of 8745.45. The tech-heavy Nasdaq Composite Index jumped 4.2 per cent at 1361.01 (1306.12) while the broader S&P 500 gained 2.2 per cent.

It was one of the good weeks for the domestic market as well. Both the Bombay Stock Exchange's Sensex and the National Stock Exchange's S&P CNX Nifty showed firm trend as fears over monsoon receded. The Sensex finished firm at 3065.90 (2976.34) while the Nifty closed at 979.25 (961.95).

Among the ADRs, Satyam Computer and Silverline Technologies closed on strong note while others ended on a relatively flat note. Satyam Computer closed the week at $9.35 ($8.81),

The report that Bahrain-based TAIB Securities may invest as much as $15 million in Silverline Technologies seemed to have acted as a catalyst. The ADR closed at $1.08 ($.85). In fact, Siliverline recovered from its 52-week low registered during the previous week. Another interesting development in the counter was on its premium front. The ADR now trades at a healthy premium of 15.85 per cent to its underlying stock as against the negative premium (or discount) of 11.46 per cent during the previous weekend. This was due to the dull show by the underlying stock. The stock finished the week in the negative territory at Rs 22.60 (Rs 23.35).

However, there was not much change in the premiums of other counters.

Wipro which displayed firm trend during the week, however, came under pressure after the company restated its earnings for the first quarter, saying the loss at Wipro GE Medical Systems was wider than initially reported in July. As per the revised estimates, the company's profit was reduced to Rs 169 crore compared with Rs 184 crore it reported earlier. Following this, the ADR finished weak at $23.98 ($24.90).

However, another IT major, Infosys Technologies, closed the week slightly on better note at $53.70 ($52.21).

Another counter that witnessed strain was Dr. Reddy's Laboratories. Last week, a US Court upheld Bayer's patent for its anthrax drug, Cipro. This means, Dr. Reddy's will now have to wait till December 2003 to sell its version of the same drug. Following this development, the ADR closed on weak note at $17.96 ($17.95) after notching a high of $18.15 during the week.

Despite witnessing heavy trading in the domestic market, the VSNL counter remained steady in the US market. VSNL on Friday witnessed a huge block deal of about 17 lakh shares on the BSE. However, on the NYSE, volumes declined 17,500 ADRs (24,500 ADRs), signalling the non-impact of the block deal.

The ADR closed a shade higher at $5.10 ($5.03) while the underlying stock finished flat at Rs 124.10 (Rs 124.55).

Internet counters — rediff.com and Satyam Infoway — closed on mixed note. While Sify closed firm at $.60 ($.57), rediff finished weak at $.331 ($.41).

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