The Hindu Business Line : Dr Reddy’s Lab hits year high

With both the US and the Indian bourses gaining uninterruptedly, Indian companies listed on the US bourses also moved in line with broad market trend. The ADRs of Dr. Reddy’s Lab, Infosys Technologies, Wipro, Tata Motors and Patni Computer registered their new 52-week highs during the week.

The Dr Reddy’s ADR closed at its year high level of $18.1 over the previous week close of $16.48, a gain of 9.8 per cent. The ADR gained on media speculation that GlaxoSmithKline (GSK) was in talks to buy a five per cent stake in the company. According to reports, the deal is likely to be valued at $150 million. However, a company spokesperson declined comments on media speculation. It may be recalled that in June, the company entered into a partnership with GSK to develop and market select products in generics and differentiated formulations across emerging markets outside India.

IT on a song

Information technology counters were back on investors’ favourite betting on revival in the US economy. Among them, Patni Computer scored handsome gains of 12 per cent to close at $18.47 ($16.43) amid media reports that promoters might revive their stake selling plans.

Infosys jumped 4 per cent at $48.68 ($46.78) while Wipro inched up by 2.9 per cent at $16.89 ($16.49). Wipro announced last week that it won a 3-year contract from All Nippon Airways. The IT major, however, did not provide financial details of the contract.

Mahindra Satyam, erstwhile Satyam Computer, ended on flat note at $6.48.

Tata Motors was the other ADR to register its 52-week high. Tata Motors appeared to have climbed on reports it may sell as much as 15 per cent stake in its subsidiary Tata Motors Finance.

Banks gain

Banking majors also ended the week on positive note. While HDFC Bank finished with a gain of 4.3 per cent at $108.54 ($103.97), ICICI Bank moved up by 1.63 per cent at $35.41 ($34.84).

Telecommunication majors MTNL and Tata Communications, however, closed the week on negative note. While the former tumbled by 2.65 per cent, the latter by 1.88 per cent.

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