Indian ADRs substantially Outperforms NASDAQ

India's economy grew at 9.4 pct in the fiscal year ended March 2007, the fastest expansion in the last 18 years.The Indian economy is expected to grow by 8.5 percent in the fiscal year ending March 2008. It therefore makes sense to look at India from investment perspective. Indian ADRs ( American and global depositary receipts) provides one way of investing in India. We will look at the historical growth of Indian ADRs and try to draw some quick conclusions.
The following table lists the prices of American and global depositary receipts of Indian companies compares in the past three years. The Closing prices of ADRs have been taken.
Table 1 : Share Prices of Indian ADRs

Sl No.	Company	Sticker	1 Yr Ago	2 Yr Ago	3 Yr. Ago	10-25-07
1	HDFC Bank Ltd	HDB	56.87	49.7	31.37	102.94
2	ICICI Bank Ltd.	IBN	28.06	25.37	13.17	51.21
3	iGATE Corp.	IGTE	4.85	3.65	3.94	8.69
4	Morgan India Investment Fund	IIF	39.88	38.18	19.75	49.8
5	Infosys Technologies Ltd.	INFY	45.85	34.62	27.16	45.97
6	Mahanagar Tele	MTE	6.51	6.16	6.2	7.96
7	Patni Computer	PTI	18.75	NA	NA	23.08
8	Dr. Reddy's	RDY	15.82	8.87	8.27	16.15
9	Rediff.com	REDF	14.78	12.98	7.51	17
10	Satyam	SAY	19.09	14.11	11.01	23.6
11	Sify Ltd.	SIFY	8.9	4.73	5.57	8.06
12	WNS Ltd.	WNS	27.9	NA	NA	16.77
13	The India Fund Inc.	IFN	41.73	33.6	19.09	51.85
14	Videsh Sanchar	VSL	17.09	15.5	7.04	22
15	Tata Motors Ltd.	TTM	17.72	11.23	NA	18.5
16	Syntel Inc.	SYNT	22.55	17.24	14.06	40.81
17	Wipro Ltd.	WIT	12.49	9.53	8.44	13.82

The purpose of this analysis is to find the rate of growth of the Indian ADRs as compared to the US market. The
Following Table lists out the gain during the past 3 years of the US market verses the Indian ADRs.

Table 2 : Annualized Percentage Return of Indian ADRs Vs NASDAQ

Sl No.	Company	Sticker	1 Year Return	2 Year Annualized	3 Year Annualized
1	HDFC Bank Ltd	HDB	81.01%	53.56%	76.05%
2	ICICI Bank Ltd.	IBN	82.50%	50.93%	96.28%
3	iGATE Corp.	IGTE	79.18%	69.04%	40.19%
4	Morgan India Investment Fund	IIF	24.87%	15.22%	50.72%
5	Infosys Technologies Ltd.	INFY	0.26%	16.39%	23.09%
6	Mahanagar Tele	MTE	22.27%	14.61%	9.46%
7	Patni Computer	PTI	23.09%	NA	NA
8	Dr. Reddy's	RDY	2.09%	41.04%	31.76%
9	Rediff.com	REDF	15.02%	15.49%	42.12%
10	Satyam	SAY	23.62%	33.63%	38.12%
11	Sify Ltd.	SIFY	-9.44%	35.20%	14.90%
12	WNS Ltd.	WNS	-39.89%	NA	NA
13	The India Fund Inc.	IFN	24.25%	27.16%	57.20%
14	Videsh Sanchar	VSL	28.73%	20.97%	70.83%
15	Tata Motors Ltd.	TTM	4.40%	32.37%	NA
16	Syntel Inc.	SYNT	80.98%	68.36%	63.42%
17	Wipro Ltd.	WIT	10.65%	22.51%	21.25%
		Average	26.68%	34.43%	45.38%
18	NASDAQ COMPOSITE	^IXIC	20.24%	13.20%	13.83%
19	Dow Jones Industrial Average IN	^DJI	19.56%	16.01%	12.03%

Some Conclusions
1. The growth of Indian ADRs outperforms the average US market by substantial margin in the last 3 years.
2. The difference in growth of the Indian ADRs and US market has narrowed in the last year.
3. The advantage of the Indian ADRs as compared to the average US market is on expected line because of the higher GDP growth of Indian in general and Indian companies in particular.
The inverstor will need to continue to explore Indian ADRs. We also will need to monitor Indian economy in general to take advantage of the global growth pattern.