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: Uncertainty continues - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Feb 1, 2003

    Global markets: Uncertainty continues

    US markets were characterized by a significant amount of volatility in the current week. This was mainly due to the worsening situation in the Middle East as well as mixed performance on the corporate front. The prospects of an increasingly inevitable war with Iraq have made US investors increasingly nervous. Lackluster corporate results have further added to the gloom. The only saving grace for the week was better than expected quarterly results announced by Walt Disney and Honeywell.

    The major disappointment for the current week was poor results reported by media giant AOL Time Warner mainly due to a huge US$ 44 bn write off. On Friday, however the markets were perked due to a jump in the Chicago Purchasing Managers' index to 56 in January helped the Dow further. Estimates pegged it at 53 for the month of January. This suggests strength in manufacturing activity in one of the US's key industrial regions. Though the Dow gained in the last day of the week, the sentiment is unlikely to be carried in to the next week. US investors will also be looking at a slew of economic data that is to be released in the coming week. The US secretary of state's address to the UN on Wednesday is further likely to keep investors nervous.

    Indices 25-Jan-03 1-Feb-03 Change
    FTSE 3,604 3,567 -1.0%
    Nikkei 8,732 8,340 -4.5%
    Nikkei 3,288 3,250 -1.2%
    Hang Seng 9,461 9,259 -2.1%
    NASDAQ 1,342 1,321 -1.6%
    Dow 8,131 8,054 -0.9%
    Dax 2,718 2,747 1.1%

    Global markets continued to reel under the fears of a US war with Iraq. Among Asian stocks the Nikkei was one of the major losers. The Indian BSE also lost for the week despite gains made on Friday. Healthy quarterly results posted by Reliance Industries Limited (RIL) on Friday helped the Sensex gain on Friday. Going forward investors can expect volatility in the global markets until there is more clarity on the Iraq issue.

    (Price in US $) 25-Jan-03 1-Feb-03 Change
    Satyam Infoway 4.7 3.6 -23.4%
    ICICI Bank 6.8 7.0 2.9%
    Dr Reddy's 18.8 18.7 -0.5%
    Wipro 29.0 29.0 0.0%
    VSNL 3.5 3.6 2.9%
    MTNL 3.5 4.6 31.4%
    Infosys 63.0 65.0 3.2%
    Rediff 3.9 2.1 -46.2%
    HDFC bank 15.2 15.0 -1.3%
    Satyam 10.6 10.2 -3.8%
    Silverline 0.6 0.6 0.0%

    The main highlight of the current week was the gains made by the MTNL ADR on the US markets. This was mainly due to the revision in the basic telephony services tariffs. The revision is expected to benefit MTNL considerably in the long run. Also the proposed merger with the PSU telecom giant BSNL has come to the fore as a new more market friendly minister has been appointed in charge of the Telecom ministry. Other Indian ADRs remained largely lackluster due to lack of positive triggers as well as a war over hang. ICICI Bank was also one of the major gainers mainly in anticipation of improved performance in the December quarter. Infosys gained mainly due to a technical correction, as the new proposed ADR is likely to be priced near the US$ 66 mark. For the coming week the markets may continue their volatile trend due to the global uncertainty.



    Equitymaster requests your view! Post a comment on "Global markets: Uncertainty continues". 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.

    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.

    Trump Takes a Beating (Vivek Kaul's Diary)

    Aug 18, 2017

    Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    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.

    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.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    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 18, 2017 (Close)