The NASDAQ witnessed large volatility last week. The index lost its sheen in the last two days and gave up all its initial gains. However, some buying support in tech stocks on the last trading day of the week pushed up the index by 0.4%. The buying interest was also fueled by the expectation that the Federal Reserve might cut interest rates in its policy meeting towards end of the month.
Compaq Computer and Siebel Systems posted good quarterly results higher than market expectations. On the other hand Dell Computer, PMC Sierra Inc. and Ericsson’s earnings forecast kept investors wary of tech stocks. Blue chip stocks including McDonald’s Corp. and Minnesota Mining also declined after they declared lacklustre earnings.
(Price in $)
Indian ADRs witnessed selling pressure at higher levels after a recent run up. Last week’s major gainer Rediff turned major loser this week. The stock ended lower by more than 15%. Infosys, VSNL and Wirpo also lost substantially.
ICICI group companies were in the limelight. ICICI bank recorded operating profit growth of more than 139% fueled by sharp improvement in operating margins for the quarter ended December 2000. Nevertheless, a 40% growth in net profits was lower than forecasted, which hit the stock. ICICI was the only gainer among the Indian ADRs. The stock was up sharply ahead of its third quarter results. It however, retreated after announcing a drop of 7% in profits. This was due to lower other income apart from reduction in operating margins.
VSNL also surprised the markets by recording a growth of more than 30% in profits. The stock was down on selling pressure.
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