The Hindu Business Line : ICICI Bank hits six-year low

With bad news flowing in from all corners, including a Government report that 651,000 workers were laid off in February alone, the US stocks posted their biggest weekly losses in three months. The S&P 500 plummeted 7 per cent, the Dow Jones Industrial Average declined 6.2 per cent and the tech-focussed Nasdaq slumped 6.1 per cent.

The domestic stock markets, tracking global cues, slumped on continuous foreign institutional investors’ selling. While the BSE Sensex plunged 6.36 per cent, the broader NSE Nifty tumbled 5.19 per cent.

Among the ADRs, it was one of the worst weeks for ICICI Bank, as it tumbled by 16 per cent to end at $10.37 against the previous week close of $12.46. During intra-day trading, it touched a low of $9.6, the level which it touched during November 2003. The other banking major, HDFC Bank, also dwindled by 6.45 per cent to end at $47.71 ($51).

Global sour sentiment towards banking and finance companies appeared to have affected the Indian counters too.

This week’s star performer was the beleaguered Satyam Computer. The ADR jumped 16 per cent at $1.51 ($1.3) after the Securities and Exchange Board of India gave approval for a global competitive bidding process. Satyam said the SEBI approval will enable the incoming investor to acquire 51 per cent stake in the company. The management added that Satyam will issue fresh equity of 31 per cent to the investor.

Though Wipro and Patni Computer registered their yearly lows, they closed the week on positive note even as Infosys Technologies finished 3.6 per cent lower over the previous week close. The depreciating rupee against US dollar seemed to have helped in these counters’ recovery.

MTNL slumped 14 per cent to end at $2.4 ($2.8) and registered its 52-week low at $2.3 during the week. On the other hand, Tata Communications ended the week with a gain of 1.82 per cent at $16.15 ($15.86).

Thanks to a sharp recovery in metal market, Sterlite Industries closed the week higher at $4.71 ($4.6). The company on Saturday said that its promoter, Vedanta, would buy bankrupt US copper miner Asarco for $1.7 billion – far below the sum it first bid when commodity prices were booming.

Despite Nano launch round the corner, the Tata Motors ADR ended the week on weak note at $3.43 ($3.51). The counter registered its year low at $3.05.

Internet majors Rediff.com and Sify also ended the week on a dull note at $1.47 ($1.52) and $0.6 ($0.59).

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