Why India's US-Listed ADRs Are Bleeding While Their Home-Market Shares Hold Firmer Over the past year India's US-listed ADRs, from Infosys and Wipro to HDFC Bank, have slid sharply on Wall Street, while their home-market shares have held up better thanks to the rupee and local investor conviction. India's American Depositary Receipts have had a rough stretch on Wall Street, and the numbers lay it bare. Over the past year the technology names in the pack, led by Infosys and Wipro, have handed investors double-digit losses, dragged down by a broader slump in the IT sector and a clear crisis of confidence among shareholders. The contrast with America's own tech heavyweights could hardly be starker: Nvidia, Apple and Alphabet, the parent of Google, all closed the same period firmly in the green. An IBM shock that rippled across Indian tech The most recent jolt came when IBM stock cratered 25.5% after the company posted second-quarter earnings that fell well short of what the market had penciled in. That single move set off a sharp sell-off across Indian IT ADRs, a reminder of how tightly the fortunes of these listings are tied to sentiment around the global technology trade rather than to their own quarterly performance. Banks join the retreat It was not only the software names feeling the pain. HDFC Bank and ICICI Bank, two of the biggest financial names among the ADRs, also underperformed noticeably over the same window, deepening the sense that the entire Indian ADR basket has fallen out of favor abroad. Six Indian ADRs currently trade in the United States, and their one-year scorecard tells a largely disappointing story. Figures for Tata Motors, which is listed on the New York Stock Exchange, were not available. Even where there were brief bursts of optimism, such as the flicker of hope around a possible US-Iran deal that briefly lifted some prices, the longer trend has been downward. Earnings across these companies have stayed broadly stable, yet the share prices have kept sliding. Pharma holds up better, but not without scars Dr. Reddy's, the drugmaker listed on the NYSE, has weathered the storm somewhat better than the tech contingent, though it too missed the mark, falling short of estimates in its fourth-quarter results. On the home front, its shares took a knock after the company temporarily halted commercial supplies of its generic semaglutide because of a problem with the drug's active pharmaceutical ingredient, or API. Around the same time, Torrent Pharmaceuticals voluntarily pulled select batches of Semalix injection pens that had been manufactured by Dr. Reddy's. Why the home market has held up better A recurring pattern runs through all of this: returns on the domestic Indian shares have generally been less painful than those on the US-listed ADRs. Several forces explain the gap. A depreciating rupee eats into the value of ADRs, which are priced in dollars. Add to that the different trading hours, varying liquidity and the distinct investor mood on each exchange, and the divergence starts to make sense. Tata Motors is the standout exception, shining as a genuine positive performer on the Indian market even as its ADR visibility remains limited. In the end, while Wall Street has been quick to punish Indian ADRs amid global uncertainty and sector headwinds, Dalal Street has told a more layered story, one in which the rupee's relative resilience and the conviction of local investors have softened the blow. The deeper takeaway is that the real India story rests less on where a stock is listed and more on fundamentals sturdy enough to travel across borders. What this means for you • For NRI and US investors: If you hold Indian ADRs like Infosys, Wipro, HDFC Bank or ICICI Bank, your dollar returns over the past year have taken a bigger hit than the same companies' shares back in India. • For domestic investors: Shares on Indian exchanges have generally fallen less, partly because a weaker rupee erodes the dollar-priced ADRs more than the local stock. • For pharma watchers: Dr. Reddy's halt on generic semaglutide supplies and the Torrent recall of Semalix pens are worth tracking if you follow the stock. Questions & Answers 1. How much did IBM stock fall and why? IBM stock fell 25.5% after it posted second-quarter earnings that were worse than the market expected. 2. Which Indian tech ADRs lost the most? Infosys and Wipro were hit hardest, delivering double-digit negative returns over the past year. 3. Which US tech companies gave positive returns? Nvidia, Apple and Alphabet, the parent of Google, all posted positive returns over the same period. 4. Why did Dr. Reddy's shares fall at home? The company temporarily halted commercial supplies of its generic semaglutide due to an API issue, and Torrent Pharmaceuticals recalled select batches of Semalix pens made by Dr. Reddy's. 5. Why did domestic shares hold up better than the ADRs? Rupee depreciation, different trading hours, liquidity and investor sentiment on each exchange all help explain the gap. 6. Which Indian ADR stood out as a positive performer? Tata Motors stood out as a positive performer on the Indian market, though its ADR visibility remains limited. https://trendkia.com/en/market/wall-street-para-lurhake-bharatiya-adr-lekina-dalal-street-para-rupaye-ne-bachai-laja-9221 TrendKia — Har trend, sabse pehle.