Global markets: Earnings up, markets down - 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: Earnings up, markets down

Jan 24, 2004

Robust earnings reports continued to trickle in to the US markets but the investors used this as an excuse to book profits and as a result for the week ending January 23, 2004, Nasdaq edged lower by 1% and the Dow suffered a marginal decline. In the process both the benchmark indices broke multi week winning streaks. On account of a holiday on Monday, the week's proceedings got off to a delayed start and mixed trends were witnessed on Tuesday. While the Dow suffered a decline of nearly 1%, Nasdaq ended marginally higher on the back of revival of interest among telecom stocks. However, the trend got reversed in the next two days as the investors used robust earnings report from tech majors as an excuse to rotate their money from tech to blue chips, thus helping the Dow to post gains. While mixed indications from the chip industry helped Nasdaq to close just above break even on Friday, Dow lost nearly 1% on account of profit booking among most of the member stocks and thus capped off a week that remained strong on earnings reports but weak on market gains.

Indices 16-Jan-04 23-Jan-04 Change
NASDAQ 2,141 2,124 -0.8%
Hang Seng 13,168 13,751 4.4%
Nikkei 10,857 11,069 2.0%
BSE-Sensex 5,946 5,817 -2.2%
FTSE 4,488 4,461 -0.6%
Dow 10,601 10,568 -0.3%
Dax 4,112 4,152 1.0%

Other major indices across the world displayed mixed trends for the week. After losing more than 100 points mid way between the week, Japanese markets bounced back on Friday. Firming of the Yen against the dollar could have been a contributing factor. The Indian benchmark index also broke the three-day losing streak on Friday, but the gains were not enough to wipe out the complete deficit and as a result ended 2% lower for the week. European indices ended almost flat for the week, as exhaustion seems to be setting in after the markets edged to their 17-month high levels on expectations of solid earnings news.

(Price in US$) 16-Jan-04 23-Jan-04 Change
HDFC Bank 32.0 32.5 1.6%
Wipro 50.4 57.1 13.3%
Satyam 23.3 27.5 18.0%
Infosys 90.5 93.5 3.3%
Satyam Infoway 9.3 8.0 -14.0%
Dr.Reddy's 30.2 31.7 5.0%
Silverline 1.1 1.1 0.0%
ICICI Bank 16.0 16.7 4.4%
Rediff 9.6 8.6 -10.4%
MTNL 7.4 7.1 -3.5%
VSNL 7.5 7.6 1.3%

Among the Indian ADRs, tech majors emerged as the major gainers during the week. The companies have reported robust 3QFY04 numbers and hence the optimism behind the ADRs. Pharma major Dr Reddy also gained significantly; perhaps on the back of anticipation of good quarterly numbers, as most of the pharma companies have posted impressive results. Banking and telecom ADRs, however, showed mixed trends. Dotcom ADRs had gained substantially over the past few weeks and hence the much-expected profit booking resulted in ADRs witnessing significant declines over the week.

Equitymaster requests your view! Post a comment on "Global markets: Earnings up, markets down". Click here!

  

More Views on News

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

ONGC to NMDC: Here are 5 Stocks Value Investors Should Closely Track (Views On News)

Nov 26, 2021

Before investing in value stocks, research the company and gain insight into why the market is discounting it.

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

Has Your Mutual Fund Scheme Invested in Paytm? Here's What You Should Do... (Outside View)

Dec 1, 2021

One97 Communications (Paytm) shares continue to erode the wealth of investors. If any of your mutual fund schemes hold shares in it, you need to be careful and track its performance more carefully in future.

Is this India's 'Reliance Power' Moment? Here's How to Prepare for it (Profit Hunter)

Dec 1, 2021

Investors forget that market cycles are inevitable and there's no such thing as a free lunch.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

How to Find Your Next 10-Bagger in this Market (Profit Hunter)

Nov 19, 2021

The #1 make or break factor in your portfolio you shouldn't ignore.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Dec 1, 2021 03:00 PM

MARKET STATS