Indian ADRs: The Untold Story of Infosys, HDFC Bank, TaMo, MMT..Wall Street vs Dalal Street

Recently, the Indian IT ADRs faced a sharp sell-off after IBM shares plunged 25.5%, followed by its worse than expected second quarter earnings.

Similarly, HDFC Bank and ICICI Bank have significantly underperformed during the same period.

There are six listed Indian ADRs. The table below more or less summarizes returns for the past year. GoodReturns couldn't access the data for Tata Motors, which is listed on the NYSE.

While there have been some knee-jerk moments like the possibility of a US-Iran deal that triggered these stock prices, over a period of time, despite overall stable earnings, share prices have fallen.

Dr. Reddy's, the pharmaceutical company listed on NYSE, has been performing moderately better than the tech companies but missed estimates in the fourth quarter earnings.

Back home, the company's shares have taken a hit after the pharma company temporarily suspended commercial supplies of its generic semaglutide due to an issue with the drug's active pharmaceutical ingredient (API), while Torrent Pharmaceuticals voluntarily recalled select batches of Semalix injection pens manufactured by Dr. Reddy's.

Domestic returns are generally less negative than US ADR returns. This is common due to: Rupee depreciation (weakens USD-denominated ADRs), different trading hours, liquidity, and investor sentiment on each exchange.

Tata Motors stands out as a positive performer in India (unlike limited/negative ADR visibility).

While Wall Street has punished Indian ADRs amid global uncertainty and sector headwinds, Dalal Street tells a more nuanced tale, one where the rupee's resilience and local conviction have cushioned the blow. In the end, the real India story isn't just about listing venues, but about enduring fundamentals that transcend borders.