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.
Waiting for the winds - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Feb 2, 2002

    Waiting for the winds

    It was another dull week on the street with the BSE Sensex and NSE Nifty remaining flat. The earning season, which was anticipated to give direction to the market, passed by without stirring much sentiment. Investor indecisiveness was palpable across the globe with markets remaining unenthused.

    Central banks, globally, have dramatically cut interest rates, pumping liquidity into the system to revive their respective moribund economies. Initial sputter of life, in the U.S economy, seems to be emerging, which, as many believe, is likely to lead the global economy out of the slump. Through the downturn consumer spending remained resilient, which was seen in the home mortgages market growing impressively. Consumers seem to be taking advantage of lower interest rates. Confidence was further reinforced with the U.S economy expanding, though marginally by 0.2% YoY, in the fourth quarter. Also, by leaving short-term interest rates unchanged, the Fed chairman seems to be indicating that the probability of further economic contraction is less compared to that of expansion.

    The Indian economy also seems to be making its way out of the trough. The most comprehensive indicator of economic development, GDP growth, although down on YoY basis has seen an uptick in the second quarter to 5.3% as compared to 4.4% in the first quarter of the fiscal. The higher growth is largely led by the agriculture sector, which grew by 3.4% in the concerned quarter compared to a flat growth in the previous year. Much of the slowdown is attributed to the downturn in the industrial sector, which pulled back GDP growth by a percentage point in 2QFY02, YoY. Expectations are that growth in the agriculture sector will help pull up GDP growth rates for the fiscal. And eventually, higher farm incomes will result in greater demand for industrial products.

    Having said that, the markets, running up from the lows in October '01, seem to have factored in a turnaround. Investors are on the lookout for fresh economic data before deciding on their next move, which could be leading to the dullness in the bourses. Triggers ahead seem to be roll out of new industry policy, disinvestments and the budget. A glance at some diversified equity growth funds seem to suggest that fund managers have increased their exposure to the oil & gas sector and PSUs, which supports the above-mentioned assertion. In the coming week, the Government is likely to announce the successful bidder for IBP and VSNL. This is likely to cause some excitement. The coming week could get interesting.



    Equitymaster requests your view! Post a comment on "Waiting for the winds ". 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)