Apr 17, 2004|
US markets: How much is too much…
While a slew of positive earnings reports continued to hit the US markets, concerns over geopolitical uncertainties and first signs of overheating of the US economy, loomed large over the week. As a result, for the week ending April 16, 2004, the US benchmark indices showed mixed results. While the Dow managed marginal gains, tech laden Nasdaq edged lower by 3%.
Hopeful that the first quarter earnings from US Inc would be positive, the markets started the week on a positive note and they staged a rally on Monday. However, they remained jittery over the next two days, as the fact that the earnings have been robust raised concerns over interest rates and inflation. The fact that the markets had gained over the last few sessions also added to the woes.
With investors a little disappointed with earnings reported by tech stocks and the fact that these stocks were more vulnerable to geopolitical concerns resulted in the Nasdaq witnessing declines over the last two trading days of the week. The Dow, helped in part by drug stocks and by virtue of it being a little diversified, however gained during the same period, but the declines earlier in the week meant that it could notch up only marginal gains for the week. With no economic news of real importance due next week, attention would be focused on Monday's one report on leading economic indicators.
As far as the major indices across the world are concerned, while selling pressure was evident among major Asian indices, European indices ended up higher. Indian benchmark index, BSE, however bucked the trend among Asian indices and ended up marginally higher for the week. Strong results by tech bellwether Infosys as well as a forecast of normal rains by the IMD (Indian Meteorological Department) were some of the primary reasons behind the robustness. European indices on the other hand, gained on the back of buying interest among defensive stocks such as utilities and FMCG, as investors took an exception to tech stocks following the sector's decline in the US markets.
Among Indian ADRs, while banking and tech ADRs witnessed gains over the week, profit booking was evident among dotcom ADRs. Tech ADRs such as Infosys gained despite selling pressure among tech stocks on Nasdaq. This bears testimony to the strong fundamentals of the company. It announced its annual results earlier this week and gave strong forecast for the current fiscal and therefore the buying interest. The effect rubbed off on its peer Satyam as well as the major gained 2% over the week. Banking ADRs also witnessed buying interest on the back of anticipation of good quarterly results as the credit off take in the Indian markets remained robust over the quarter. Among the losers, a bout of profit booking was witnessed among dotcom majors. Rediff suffered the maximum and lost nearly 14% over the week. It should be noted that the ADR had appreciated a lot over the past few weeks on the back of its tie up with Yahoo. As a result, investors seemed to have capitalized on the gains and booked profits.
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: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407