ICICI Bank, HDFC Bank see sharp fall

US stocks ended lower last week as high oil prices refreshed investors’ worries on inflation and consumer spending. The S&P 500 fell 3.5 per cent, which according to Bloomberg, was the steepest decline since the first week of February, to 1,375.93. The Dow Jones Industrial Average dropped 3.9 per cent to 12,479.63. The Nasdaq Composite Index slid 3.3 per cent to 2,444.67.

Foreign institutional investors’ selling coupled with weak global cues affected the sentiment in the Indian markets. The Bombay Stock Exchange’s Sensex slumped by 4.5 per cent and the NSE’s S&P CNX Nifty by 4.09 per cent.

Among the ADRs, only Dr Reddy’s Laboratories was able to finish in the green. The ADR jumped 5.18 per cent to end the week at $16.01 against the previous week’s close of $15.22. The company last week announced the launch of Omez Insta, a powder formulation that offers relief to gastritis, following which the ADR moved up sharply. Earlier during the week, the company announced a 40 per cent drop in net profit for the quarter ended March 30, 2008 at Rs 162 crore (Rs 269 crore), as sales growth slowed in the key US market. Income fell 9.8 per cent to Rs 1,038 crore.

Banking counters – ICICI Bank and HDFC Bank – were the biggest losers on rising inflation. The ADR of ICICI Bank fell by 11 per cent and the latter by 8.29 per cent.

IT counters also witnessed a fall of around 5-6 per cent. The ADR of Infosys Technologies was the biggest loser among them, which fell by 6.28 per cent. Satyam Computer slipped 5.3 per cent, Patni Computers by 5.19 per cent and Wipro by 3 per cent.

Telecommunications counter MTNL and Tata Communications (erstwhile VSNL) fell by 3.5 per cent and one per cent respectively.

Tata Motors also witnessed sharp fall of about 5.25 per cent at $15.18 ($16.02) on the back of surge in crude price, which could slow down the growth of auto sector. Fall in metal prices at the LME appeared to have weakened Sterlite Industries’ ADR, which slipped by 2.42 per cent at $21.29 ($21.82).