Indian Stocks Week-in-Review: ADRs, Led By Banks, Up Across the Board

Indian Banks led the way again after taking the previous week off. ICICI Bank (IBN) (up 8.32%) and HDFC Bank (HDB) (up 6.60%) are both approaching their 52-week highs. Both are excellent banks and if you would like some exposure to the surging Indian economy then look no further than these two banks. India also reported that the GDP grew by 8.9% in Q1. The first quarter growth rate is the highest since 2000-01.

In addition, ICICI Bank is planning to hire about 40,000 people a year for the next 3 years in a effort to expand its retail banking services and insurance operations.

Wipro Ltd. (WIT) (up 5.16%) announced the acquisition of Sweden-based Hydrauto Group AB for US$ 31 million, in an all cash deal. Hydrauto is a provider of Hydraulic components and solutions in Europe. Hydrauto is a Tier 1 supplier to OEMs of Material Handling Equipment, Forestry Equipment, Construction and Earth Moving Machinery, amongst others. For the year ended 31 December 2005, its revenues were US$ 112 million. The company will be part of Wipro Infrastructure Engineering, which had revenues of US$ 57 million, year ending March 31st, 2006. Wipro’s CFO., Chief Financial Officer Suresh Senapaty, also stated that his company will meet its Q2 estimates.

Infosys Technologies (INFY) (up 3.56%) continues its strong run and is near its 52-week high.

Meanwhile the strong Indian markets and economy helped two CEFs: India Fund (IFN) (up 4.39%) and MS India Fund (IIF) (up 4.99%) locked in strong gains for the week.

Sify Ltd. (SIFY) (up 3.03) closed the week up after two consecutive down weeks.

Tata Motors (TTM) (up 2.7%) also recovered from a down week.

WNS Holdings (WNS) (up 2.33%) is also holding strong since its IPO and is very close to its 52-week high.

Patni Computers (PTI) closed the week up 1.11%.

Satyam (SAY) managed a 0.6% gain to close the week. The company also announced that its signed a 10 year $30 million deal with a India’s Punjab & Sind Bank to implement and maintain its Core Banking System for the bank.

Dr. Reddy’s Lab (RDY) (down 0.57%) and ClinTec International announced that they have entered into an agreement for the joint development of an anti-cancer compound, DRF 1042, belonging to the Topoisomerase inhibitors class of compounds for use as potential treatment of various types of cancer.

Meanwhile, Rediff (REDF) had the poorest week of all the ADR’s, closing the week down 1.42.

Disclosure: I am long SIFY and IFN.

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