The sentiment in the NASDAQ in the last week was hit by a disappointing economic data and continued earnings warnings issued by the tech majors. The index slipped by 6.7% and touched a new 52-week low. During the week, list of companies including EMC Corp, Brocade Communications Systems, Sun Microsystems and Motorola forecasted depressing earnings outlook in the wake of slowing US economy. Tech counters witnessed a huge sell off with investors losing faith in sustaining their earnings growth. Even upbeat results from retail companies Wal-Mart Stores and Home Deport failed to boost the sentiment.
The key US consumer price index (CPI) showed a rise of 0.6% in January (0.2% in December). This has raised concerns that the Federal Reserve may not cut the interest rates in its next policy meeting. Nevertheless, tech stocks re-gained some of the lost points towards the end of week.
(Price in $) | 17-Feb-01 | 24-Feb-01 | Change |
Infosys | 108.5 | 100.0 | -7.9% |
Satyam Infoway | 5.4 | 4.6 | -14.0% |
Rediff | 4.4 | 3.3 | -25.7% |
Silverline | 10.5 | 8.2 | -21.8% |
VSNL | 14.0 | 14.2 | 0.8% |
ICICI Bank | 7.2 | 6.9 | -4.3% |
ICICI | 12.7 | 11.9 | -6.6% |
Wipro | 62.0 | 55.2 | -11.0% |
Indian ADRs in general lost ground as the markets fretted about future earnings of technology stocks. Rediff, Sify and Silverline were the major losers.
Tech stocks also lost ground. Wipro was down by 11%. The company has bagged a five-year order worth US $7.5 million from the Scottish Parliament to provide IT support services and consultancy. The contract involves internal and external network management, systems administration, end user support, enterprise systems security, and providing consultancy on technology shifts.
Infosys was hit by a rumour that one of its major clients Nortel (telecom equipment maker), is re-negotiating contracts with the company. Almost all the key telecom stocks on the NASDAQ including Nortel hit their 52-week low on the back of bleak future earnings outlook. This has raised concerns about Infosys’ future growth prospects. However, up-gradation of rating on the company by a key investment banker on the last day of the trading session fueled a rally in the stock.
VSNL was only gainer among the Indian ADRs. Strong buying interest in the stock was after a buy recommendation from one of the key investment bankers. The earning forecast of the company has been raised on the back of strong international voice traffics. This business accounts for 90% of VSNL’s revenues. The company has been recently offered free entry into the domestic long distance (DLD) phone service market by the government to compensate for the loss of monopoly in international phone service. Its DLD business is expected to boost its earnings growth in future.
Indices | 17-Feb-01 | 24-Feb-01 | Change |
NASDAQ | 2,425 | 2,263 | -6.7% |
Dow | 10,800 | 10,442 | -3.3% |
Hang Seng | 15,630 | 15,281 | -2.2% |
Nikkie | 13,175 | 13,246 | 0.5% |
BSE | 4,330 | 4,128 | -4.7% |
INTELLECT DESIGN share price is trading up by 10% and its current market price is Rs 718. The BSE 500 is up by 0.7%. The top gainers in the BSE 500 Index are INTELLECT DESIGN (up 10.1%) and SOBHA (up 14.4%). The top losers are CESC (down 0.1%) and CASTROL INDIA (down 0.1%).
ADANI PORTS & SEZ share price is trading down by 5% and its current market price is Rs 755. The BSE 500 is up by 0.1%. The top gainers in the BSE 500 Index are GRAPHITE INDIA (up 5.4%) and GSK CONSUMER (up 5.1%). The top losers are ADANI PORTS & SEZ (down 5.3%) and MAH. SCOOTERS (down 5.2%).
For the quarter ended December 2020, ADANI PORTS & SEZ has posted a net profit of Rs 16 bn (up 16.5% YoY). Sales on the other hand came in at Rs 37 bn (up 12.3% YoY). Read on for a complete analysis of ADANI PORTS & SEZ's quarterly results.
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For the quarter ended December 2020, AVANTI FEEDS has posted a net profit of Rs 869 m (up 47.2% YoY). Sales on the other hand came in at Rs 9 bn (down 0.8% YoY). Read on for a complete analysis of AVANTI FEEDS's quarterly results.
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