Global markets: Tentative gains - 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: Tentative gains

Feb 22, 2003

The week was a shortened one and it started on a positive note for the US markets. After rising on Tuesday (Monday being closed) US markets were weak in the next two days but managed to gain considerably on Friday. The impending war on Iraq and new economic data were the major issues that were considered during the week by investors. On Tuesday, US markets gained on hopes that the Iraq issue may actually get resolved peacefully. On Wednesday and Thursday however the markets succumbed to pessimism and poor economic data. Investors shifted their focus on economic data on Thursday. Investor sentiment dampened as one report stated that the wholesale price index has jumped 1.6% in January. This has led to fears of increased inflation. Jobless claims in the second week of February have risen far above the expected levels. The US government has also stated that the trade balance for December came in at a negative US$ 44 bn compared with expectations of a negative US$ 39 bn. This means that the US GDP growth may have to be revised lower than earlier expectations. US markets surged ahead on Friday though as both the Dow and the NASDAQ gained by over 1%. After initial jitters regarding the explosion at Staten Island, markets recovered handsomely as reports indicated that the incident was an accident.

Finally gains made on Tuesday and Friday pushed the US markets in the positive territory. The Dow gained 1.4% while the NASDAQ gained 3% during the current week. Investors seem to be hoping that the war is likely to be delayed and this has kept the markets buoyant. The coming week however may witness more action, as there are a slew of economic reports that are going to be released. But war concerns are likely to favour a generally bearish sentiment.

Indices 15-Feb-03 22-Feb-03 Change
FTSE 3,612 3,727 3.2%
Nikkei 8,702 8,514 -2.2%
BSE 3,223 3,307 2.6%
Hang Seng 9,202 9,251 0.5%
NASDAQ 1,310 1,349 3.0%
Dow 7,909 8,018 1.4%
Dax 2,674 2,649 -1.0%

As far as the global markets are concerned the FTSE reflected the positive sentiment of the US markets. The German Dax however lost marginally by 1%. The Indian Sensex closed strong for the week with nearly 3% gains. Other Asian markets also closed in the positive territory. Though the sentiment seems to be fairly optimistic we would like to point out that the threat of war is still not over and this may bring disappointment in the near future.

(Price in US $) 15-Feb-03 22-Feb-03 Change
Satyam Infoway 3.5 3.7 6.3%
ICICI Bank 7.0 7.1 2.1%
Dr. Reddy's 19.1 18.6 -2.4%
Wipro 29.2 30.0 2.6%
VSNL 3.5 3.7 8.4%
MTNL 4.4 4.5 0.5%
Infosys 65.1 63.7 -2.1%
Rediff 1.9 2.3 23.0%
HDFC Bank 15.3 16.1 5.0%
Satyam 10.2 10.8 5.9%
Silverline 0.5 0.5 -3.8%

Indian ADRs largely gained in the current week, major gainers being VSNL, HDFC Bank and Satyam Infoway. HDFC Bank is almost near its 52-week high. VSNL on the other hand gained strongly on Friday due to news regarding a proposed VRS to be announced in the coming week. Software major Infosys was the only loser among software counters; this is despite the fact that software stocks exhibited considerable volatility during the week. For the coming week the Indian ADRs are likely to remain volatile and there may be some profit taking in the major gainers this week like VSNL and HDFC Bank.


Equitymaster requests your view! Post a comment on "Global markets: Tentative gains". Click here!

  

More Views on News

The Gold and Silver Bull Market is Not Over (Fast Profits Daily)

Sep 29, 2020

The last few days have been nerve-racking for bullion traders. Stay calm. The bull market still has a long way to go.

Earned Short Term Capital Gains on Shares? Here's What You Need to Know While Filing ITR (Outside View)

Sep 29, 2020

PersonalFN explains CBDT's clarification regarding scrip wise disclosure in ITR in case of short term capital gain.

This Smallcap is a Must Have Stock in Your Portfolio (Profit Hunter)

Sep 29, 2020

Investing in this smallcap could open doors of huge, long-lasting wealth.

Why the Market May Rally for a Few Days (Fast Profits Daily)

Sep 28, 2020

Why I think the market can rise for the next few days.

My Top Pick for 2021 is Not a Stock. It is Something Much More Powerful (Profit Hunter)

Sep 28, 2020

My top pick for 2021 is something that has helped me and my subscribers beat the stock market by a factor of 2:1.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Sep 29, 2020 (Close)

MARKET STATS