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: Signs of fatigue - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Mar 20, 2004

    Global markets: Signs of fatigue

    The US markets remained largely volatile over the last week. However, on account of the euphoria over the status quo on the interest rates, both the Dow as well as Nasdaq managed to notch up gains during the week. While the Nasdaq ended 1% higher, Dow gained by 2%.

    The week's proceedings were largely dictated by the security concerns that arose in the aftermath of the Madrid bombings as well as news on the Al-Qaeda front. Moreover, with doubts over the sustainability of the US economic growth and poor job markets, markets experienced substantial downward pressure. However, the Fed's decision to maintain the status quo on interest rates, did generate some investor interest and as a result markets witnessed two successive days of growth. The fact that markets had declined over the last few trading sessions and the investors were looking for some bargain hunting also helped. But on account of uncertainty over the presidential elections and also the fact that the valuations are looking a bit stretched, volatility is likely to remain the order of the day.

    Indices 11-Mar-04 18-Mar-04 Change
    NASDAQ 1,944 1,962 0.9%
    Hang Seng 13,024 12,816 -1.6%
    Nikkei 11,297 11,484 1.7%
    BSE-Sensex 5,650 5,414 -4.2%
    FTSE 4,445 4,398 -1.1%
    Dow 10,128 10,296 1.7%
    Dax 3,905 3,827 -2.0%

    As far as the global markets are concerned, markets across Asia and Europe, ended lower for the week. Indian benchmark index, BSE, which lost nearly 4%, emerged as the highest loser. The trend seems to be the result of investors rotating their money into IPOs and also other investment avenues to avail of the tax benefits, before they file their annual returns towards March end. Japanese markets fell mainly on account of concerns over appreciation of yen against dollar, which would affect export oriented companies. The European markets, especially the German benchmark index Dax, lost 2% over the week and was the second biggest casualty.

    (Price in US$) 11-Mar-04 18-Mar-04 Change
    Dr.Reddy's 23.6 24.2 2.5%
    HDFC Bank 30.1 29.5 -2.0%
    ICICI Bank 13.9 14.1 1.4%
    Infosys 76.4 80.4 5.2%
    MTNL 7.3 7.4 1.4%
    Rediff 8.5 7.8 -8.2%
    Satyam 18.2 19.0 4.4%
    Satyam Infoway 6.3 6.2 -1.6%
    VSNL 8.2 8.4 2.1%
    Wipro 38.6 40.6 5.2%

    On the ADRs front, while tech and telecom shone, dotcoms declined and banking ADRs remained mixed. Tech majors Infosys and Wipro emerged as the major gainers, registering 5.2% gains during the week. Positive statements from some key policymakers on outsourcing seem to have been the result behind the gains in telecom and tech stocks. Pharma major Dr Reddy also registered gains of 3%. Investors seem to be taking advantage of the low price the stock had touched on account of its Norvasc debacle and are being optimistic about the company's ability to tide over the problem. Among banking ADRs, while ICICI Bank gained 1%, HDFC Bank witnessed profit booking and lost 2%.



    Equitymaster requests your view! Post a comment on "Global markets: Signs of fatigue". 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.

    Dear PM Modi, India is Already Land of Self-Employed, and It Ain't Working (Vivek Kaul's Diary)

    Aug 21, 2017

    Most Indians who cannot find jobs, look at becoming self-employed.

    The Key Factor Pushing Gold Up These Days (Outside View)

    Aug 21, 2017

    PersonalFN explains the chief factor pushing gold prices up of late.

    How Unique Are the Companies You Invest In? (The 5 Minute Wrapup)

    Aug 21, 2017

    One of the hallmarks of successful investing is to look out for companies that have a unique and enduring moat.

    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.

    More Views on News

    Most Popular

    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.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    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.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    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 21, 2017 (Close)