Radical end to a dramatic week - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Radical end to a dramatic week

Jan 10, 2009

The arrest of Mr. Ramalinga Raju last night marked the end of a distressing week for Indian stock markets. The Satyam scandal wore heavy on the markets during the latter part of the holiday-shortened week. Not only India, but most equity markets around the world had their fair share of negative news to keep them void of any gains.

As we enter the earnings season, most seem to be apprehensive that actual numbers and forecasts are likely to be even worse than expected. In terms of India, the obscenity of the fraud at Satyam rocked investor confidence, and became a big drag on the markets' performance this week. India was the biggest loser among key Asian markets, falling almost 5.5%.

This was followed by Hong Kong where some large companies forecasted losses and a missing of quarterly targets. Korea was the lone gainer in Asia, led by the country's central bank cutting interest rates to a record low, saying the economy is deteriorating 'rapidly'. Stocks in the US declined the most (4.8%) amongst world markets on the back of an increase in unemployment rate to nearly 16-year high.

A report that showed that 524,000 jobs were lost in the US in December 2008 alongwith other bleak economic data, took its toll on oil prices during the week. Oil dropped about 11% with the widespread anticipation of a deepening recession consequently leading to a further fall in demand for crude. The negative sentiment was strong enough to shadow signs that OPEC is fulfilling supply cuts announced last month, as also the ongoing Middle East political tension.

Gold and silver thrived on speculation that the dollar will slide as the recession deepens, boosting the appeal of precious metals as an alternative investment. A spike in inflation seems to be at the top of every one's mind, as much of the US government's heavy expenditures will have to be funded with newly printed dollars.

Source: Yahoo FinanceSource: Yahoo Finance

Source: SEBISource: BSE

Source: BSESource: BSE

Movers and shakers during the week
Company2-Jan-099-Jan-09Change52-wk High/LowChange from 52-wk High
Top gainers during the week (BSE-A Group)
Bajaj Finserv158 179 13.6%NANA
Guj NRE Coke27 31 13.1%145 / 21-78.9%
Grasim1,212 1,361 12.3%3,524 / 831-61.4%
India Cements103 115 11.1%295 / 69-61.2%
Container Corp.675 743 10.0%967 / 540-23.2%
Top losers during the week (BSE-A Group)
Satyam178 24 -86.6%544 / 12-95.6%
Lanco Infratech.167 110 -34.0%839 / 83 -86.9%
Nagarjuna Const. 85 59 -30.2%354 / 41-83.3%
India Infoline 68 48 -29.4%379 / 34-87.3%
DLF301 218 -27.6%1,225 / 145-82.2%
Source: Equitymaster

Over and above everything else, the week was marked by skepticism and cynicism amongst investors about the verity of the managements that head their companies. Investors became more alert then ever before as to who is at the helm of companies they have invested their money in.

Equitymaster requests your view! Post a comment on "Radical end to a dramatic week". Click here!


More Views on News

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

How to Save Money by Exiting Stocks Before They Fall podcast (Views On News)

Sep 24, 2020

A penny saved is a penny earned. It doesn't matter where you enter. All that matter is where you exit. Watch this video to identify an opportune time to exit your investments and book profits.

ICICI Prudential ESG Fund: Aims for Sustainability (Outside View)

Sep 24, 2020

PersonalFN briefly explains the newly launched fund : ICICI Prudential ESG Fund.

What to Do if there is a Second Wave of the Stock Market Crash (Profit Hunter)

Sep 24, 2020

Here's what I think investors should do in this selloff.

IDFC Mutual Fund Starts Campaign 'SIFI'. Should Buy Into the Idea? (Outside View)

Sep 23, 2020

IDFC Mutual Fund is taking the road less travelled and hence started a campaign SIFI (SIP in Fixed Income) to promote the concept of SIP for its debt funds investors.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 24, 2020 (Close)