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.
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.
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.
More Views on News
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.
Aug 19, 2017
Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.
Aug 18, 2017
Buying the index now will hardly help make money in stocks even in ten years.
Aug 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Aug 17, 2017
PersonalFN simplifies the mutual fund account statement for you.
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
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: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407