New York: Shares of Indian companies trading on American bourses took a severe beating in 2011 as their overall market capitalisation tumbled nearly USD 120 billion amid gloomy global market conditions.

Last year, the 15 Indian entities listed on the New York Stock Exchange and Nasdaq saw their cumulative market valuation plummet by a staggering USD 119.46 billion.

Out of the 15 entities, only three -- internet majors Sify and Rediff.com and outsourcing firm EXL Service Holdings -- witnessed an increase in market capitalisation last year.

The remaining entities, including ICICI Bank and Tata Motors, saw a significant decline in their market valuation.

"Indian ADRs on an average gave a negative return of 20 percent to investors in the year 2011. The counters performed poorly due to the crash in the Indian equity market," CNI Research Head Kishor Ostwal said.

American Depository Receipts (ADRs) are bought and sold on American markets just like stocks and are issued by a bank or brokerage firm.

Sify saw its market capitalisation rise by USD 105 million to a total of USD 214 million, while that of Rediff.com grew by USD 156 million to USD 445 million.

EXL Service Holdings managed to end with a gain of USD 26 million in market capitalisation to nearly USD 697 million.

Although the US market saw a marginal gain of around 5 percent during the year, Indian ADRs' performance was directly related to the domestic equity market, Ostwal noted.

In 2011, the US benchmark index Dow Jones Industrial Average (DJIA) gained about 5.57 percent to close at 12,217.56 points, whereas India's key 30-share Sensex index lost 24.6 percent to 15,454.92 points.

State-run telecom firm MTNL, which has been facing tough competition from rivals, was the worst performer among the ADRs in terms of the erosion in value on a percentage basis, while auto-maker Tata Motors was the worst-hit in absolute terms.

MTNL ADRs lost 69 percent, or USD 500 million, in valuation, which took its total market capitalisation to USD 257 million. Another mobile service provider Tata Communications' valuation declined by USD 442 million to USD 28.12 billion.

Tata Motors' market capitalisation tumbled by USD 42 billion to a total of USD 53.63 billion. Sterlite Industries lost USD 30 billion in valuation to USD 23.29 billion, primarily on account of a fall in metal prices.

In the banking sector, ICICI Bank saw its market capitalisation fall by USD 13 billion to USD 15.23 billion, while HDFC Bank witnessed an erosion of USD 5.3 billion in valuation to USD 20.48 billion.

Experts believe the European debt crisis and higher interest rates took a toll on banking firms. Concerns over rising non-performing assets also burdened these counters.

Among technology majors, Infosys witnessed a loss of USD 13.41 billion in market capitalisation to USD 29.36 billion.

The valuations of Wipro and Patni Computer Systems slumped by USD 12.48 billion and USD 324 million, respectively, to USD 25 billion and USD 1.09 billion.

Pharma major Dr Reddy's Laboratories' valuation declined by 20 percent, or USD 1.2 billion, to USD 4.99 billion.

In the outsourcing space, WNS Holdings and Genpact saw their market capitalisation plunge by USD 123 million and USD 62 million, respectively.

(Agencies)