Global markets: Mixed performance - Views on News from Equitymaster

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

  • MyStocks

MEMBER'S LOGINX

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

Global markets: Mixed performance

Jan 11, 2003

US markets in the current week have been volatile to say the least. Despite volatility, the Dow gained by 2% while the NASDAQ gained over 4% for the week. The main highlight for the week was the economic revival package announced by the US president. The package is worth nearly US$ 600 bn spread over a period of 10 years. This package provides for reduction in income taxes as well as the abolition of dividend taxes all together. It also proposes to create nearly 2 m jobs in the next three years. One of the revival plan's objectives was to spur investments in the stock markets. The stimulus package however failed to enthuse the markets. The current week also saw quarterly results announcement in a key Dow stock, Alcoa. Alcoa, one of the largest aluminium producers, reported earnings far below consensus estimates. This was a sentiment dampener during the week. Another disappointment was poor employment numbers, indicating that unemployment had actually risen in the month of December. Unemployment numbers dampened investor sentiment at the end of the week. Geopolitical concerns mainly Iraq has also increased during the week with coalition forces building up in the Middle East. On the other hand North Korea is also making the US administration nervous. Under these circumstances US investor sentiment may be frayed in the coming weeks.

Indices 4-Jan-03 10-Jan-03 Change
FTSE 4,004 3,974 -0.7%
Nikkei 8,578 8,470 -1.3%
BSE 3,358 3,358 0.0%
Hang Seng 9,583 9,722 1.4%
NASDAQ 1,387 1,448 4.4%
Dow 8,601 8,785 2.1%
Dax 3,098 3,037 -2.0%

Other international markets were mixed. European markets fell for the week while Asian markets gained marginally. The BSE-Sensex closed unchanged for the week. This was mainly due to weakness observed on Friday due to heavy selling in software stocks. Attention of investors however shifted to old economy stocks and this limited the fall in the indices. European indices on the other hand are reeling under poor performance of their economies. Germany the largest economy in the European region is witnessing a slowdown and this has impacted investor sentiment.

(Price in US $) 4-Jan-03 10-Jan-03 Change
Satyam Infoway 3.9 4.1 5.1%
ICICI Bank 6.2 6.5 4.8%
Dr. Reddy's 19.3 20.8 7.8%
Wipro 33.9 32.9 -2.9%
VSNL 3.8 3.6 -5.3%
MTNL 3.8 3.7 -2.6%
Infosys 69.3 69 -0.4%
Rediff 2 2.3 15.0%
HDFC Bank 13.6 13.9 2.2%
Satyam 12.7 12.1 -4.7%
Silverline 0.9 0.7 -22.2%

Performance of India ADRs was mixed in the current week. The major gainers were Dr. Reddy's (8%), HDFC Bank (2%) and ICICI Bank (5%). Losers on the other hand were a Satyam, Wipro and Infosys. Infosys though only marginally despite announcing quarterly results that were below expectations. The Infosys ADR had already run up on the indices in anticipation of the quarterly results. As the interest on the software counters waned, it gained on the old economy stocks like banks and Pharma, especially Dr Reddy's.

Weakness is likely to be observed in software ADRs due to the Infosys' results, which seemed a bit off mark as compared to expectations. Old economy ADRs on the other hand may see some further recovery in anticipation of their results as well as change in focus in their favour.

Equitymaster requests your view! Post a comment on "Global markets: Mixed performance". Click here!

  

More Views on News

Top 5 Recent IPO Developments You Should Know (Views On News)

May 12, 2021

So far in 2021, IPOs in India have raised nearly US$ 3 bn, the best start to the year since 2018.

How Did Mindtree Perform in Q4FY21? (Company Info)

Apr 20, 2021

Here's the rundown on the company's latest quarterly results.

5 Big IPOs to Look Forward to in 2021 (Views On News)

Jun 19, 2021

A peak into the hype around the IPOs of internet companies like Zomato and Paytm

HDFC Banking and Financial Services Fund: Emphasizes on the Growing Sector (Outside View)

Jun 18, 2021

PersonalFN analyses the features of HDFC Banking and Financial Services Fund and explains the potential this fund has to offer to its investors.

Can You Make More than 100 Times Your Investment? (Profit Hunter)

Jun 18, 2021

The open secret to multiplying your money in forever stocks.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Jun 18, 2021 (Close)

MARKET STATS