US-listed Indian cos on a losing spree

Indian companies listed on the American bourses lost nearly six billion dollars in just one week, with the market value of HDFC Bank eroding as much as 1.38 billion dollars, amid worsening financial turmoil and scour corporate news battering world markets.

The 16 Indian firms in the New York Stock Exchange and Nasdaq collectively lost 5.74 billion dollar in their market capitalisation for the week ended November 21, even as two companies gained valuation.

In recent weeks, the American markets went into a tailspin primarily due to heightened concerns of a protracted economic slowdown and declining consumer spending in the world's largest economy.

Among the 16 Indian stocks listed as American Depository Receipts, apart from HDFC Bank, another private sector lender ICICI Bank too lost more than one billion dollars of valuation.
While the market value of HDFC Bank tumbled 1.37 billion dollars, that of ICICI Bank dropped 1.12 billion dollars.

However, pharma major Dr Reddy's Laboratories and outsourcing firm Genpact added to their market capitalisation. Dr Reddy's Laboratories witnessed a rise of 37 million dollar in valuation, whereas Genpact's value increased by 4.3 million dollars.

IT bellwether Infosys' market valuation eroded by one billion dollars, while that of IT major Wipro decreased by 863 million dollars. In addition, Satyam Computer Services saw a value erosion of 457 million dollars.

Further, leading auto maker Tata Motors lost 77 million dollars and telecom entity Tata Communications saw a decline in value to the tune of 677.17 million dollars.

Other entities whose market capitalisation declined are internet firms -- Sify Technologies and Rediff.com, outsourcing entities -- WNS and EXLService Holdings, leading copper producer Sterlite Industries, telecom company Mahanagar Telephone Nigam Ltd and IT firm Patni Computer Systems.

On Friday, the major American indices -- Dow Jones Industrial Average, S&P 500 and Nasdaq Composite -- snapped its four-day losing streak to close in the positive territory.

Dow jumped 494 points to end the day at 8,046.42 points, while S&P 500 rose over six per cent to 800 points. Nasdaq Composite jumped more than five per cent to close at 1,384.35 points.
The surge in stocks was mainly due to media reports that President-elect Barack Obama would appoint Timothy Geithner as the new Treasury Secretary. Geithner is presently the President of the Federal Reserve Bank of New York.

Source: PTI