Infosys ADR Premium is at the lowest levels currently. Major reason for this fall in ADR price (based on study of the components used in calculations of premium since guidance for FY2007) shows that Prices has ADR has fallen more sharply than prices in local stock exchanges and this coupled with appreciation in INR by 5.6% has resulted in lowest level of premium in Infosys.
Increase/Decrease since guidance of Infosys
1. ADR prices of INFY has fallen by (6.8%)
2. INR/$ has appreciated by 5.6%
3. Prices on BSE has fallen by (3.9%)
Technically speaking it should have been otherwise - that is fall in local exchanges should have been more, since the interest rates in India are more and for similar amount of risk – risk premium paid in Indian bourses is less and vice-a-versa on foreign bourses. So as per me do keep away from large cap IT stocks as in market correction there would be stepper correction in Large cap IT stocks . As currently sentiments in Indian market look upbeat and major news flows are positive this is providing major support to this stocks.
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