American Depository Receipts (ADRs) of Indian companies listed on the US bourses fell in 2011 more than the underlying equities listed in Indian bourses.
However, the US markets, as a whole, outperformed the domestic markets.
The average return generated by the Indian ADRs stood at negative 40 per cent against negative 25 per cent posted by their Indian equities. This was more than benchmark indices.
While domestic benchmarks, the BSE Sensex and the NSE's S&P CNX Nifty, slumped 22 per cent and 23 per cent respectively, the Dow Jones Industrial Average gained 5 per cent, the tech-focused Nasdaq slipped 2.5 per cent and the broader S&P-500 closed flat.
GAINERS
However, this year belonged to Sify and Rediff.com, which witnessed a stellar performance. Analysts tracking Internet firms were unable to explain the logic behind the gains. Despite the gloom all around, Sify skyrocketed 90 per cent and the latter 45 per cent. However, the financial performance of these companies did not support such a surge in the share price.
Sify reported a net loss of $1.39 million in the September quarter, as against a net loss of $2.74 million in the corresponding quarter previous year. In June quarter in reported a loss of $1.88 million. September revenues increased marginally to $37.1 million as against $35.08 million year-ago.
Similarly, Rediff.com India reported a net loss for September quarter of $2.6 million compared to a net loss of $1.6 million for the year-ago quarter. Revenue for the second quarter increased slightly to $5.10 million from $5.07 million a year earlier.
The worst performing ADRs were MTNL and Sterlite Industries. The ADR of MTNL, which has been losing out to competition ever since telecom sector opened up, plummeted 69 per cent.
Mining ban in select States and proposal to introduce mining tax hurt Sterlite. Besides, fall in metal prices at LME also added pressure. The ADR crashed 58 per cent.
Among banks, HDFC Bank slipped 20 per cent while ICICI Bank slumped 47 per cent. Trouble in Euro zone and higher interest rate took a toll on these companies. Concern over rising NPAs also inflicted these counters adversely.
The ADRs if tech majors Infosys (34 per cent) and Wipro (21 per cent) and Patni Computer (21 per cent) fell on the back of weak cues from the US. Mahindra Satyam, which is witnessing a turnaround in fortune after it was taken over by Tech Mahindra, also fell 21 per cent.
The ADR of Tata Motors slumped 42 per cent despite it showing tremendous growth, particularly on Jaguar, Land Rover front. Tata Communications slipped 22 per cent.