Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Global markets: Mixed performance - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jan 11, 2003

    Global markets: Mixed performance

    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

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    Here's What Driving Gold Prices Up These Days (Outside View)

    Aug 21, 2017

    PersonalFN explains the chief factor pushing gold prices up of late.

    How Unique Are the Companies You Invest In? (The 5 Minute Wrapup)

    Aug 21, 2017

    One of the hallmarks of successful investing is to look out for companies that have a unique and enduring moat.

    You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

    Aug 19, 2017

    Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 21, 2017 02:26 PM