Apr 24, 2004|
Global markets: The bottomline nudge
Buoyed by robust results from the tech sector companies, NASDAQ, the US tech index, returned with a flourish and ended the week, edging higher by almost 3%. The Dow, on the other hand, ended almost flat.
The week saw investors vacillating between both good as well as bad news. While robust earnings reports and encouraging macroeconomic trends kept them optimistic, concerns over probability of an early interest rate hike kept them on tenterhooks, thus leading to choppy trading for most part of the week. Markets remained jittery on Tuesday, mainly on account of comments from the Fed, which seemed to suggest that a rise in short term interest rates is imminent.
But the pessimism soon waned and bulls took charge for the next two days, as investors focused on earnings reports and macroeconomic trends, which by and large had been encouraging. With tech bellwether, Microsoft, announcing buoyant results as well as forecast, investors lapped up the good news and rewarded other technology stocks, resulting in the tech-laden index registering robust gains. The broader market, however, remained largely lackluster.
As far as the global indices across the world are concerned, barring the Hong Kong benchmark, Hang Seng, all of them ended higher for the week. While NASDAQ turned out to be the star performer, the Japanese Nikkei was not far behind. NASDAQ posted most of its gains on Friday rising 1.2% over Thursday, as investors bought into tech stocks, following software behemoth, Microsoft's earnings release in the US markets.
While tech stocks ruled the roost in US and East Asian markets, a clutch of solid numbers across sectors as varied as auto, pharma and food, lifted the major European indices higher for the week. Indian benchmark, BSE, also witnessed gains over the week as robust results from India Inc. continue to trickle in. Exit poll results and inclusion of the country as a prospective investment destination by CalPERS, the largest pension fund in the US also added to the optimism.
It was a strong week for Indian ADRs as, barring pharma major Dr. Reddy's, and tech major Satyam, all the rest witnessed gains. Interest among the tech laden NASDAQ rubbed off on Indian tech ADRs also, as bellwethers, Infosys as well as Wipro witnessed gains over the week. Satyam, however, witnessed profit booking, despite announcing robust FY04 results at the fag end of the week. Dotcom ADR Satyam Infoway, which gained 15% over the week, emerged as the highest gainer, mainly on the back of its robust results. Telecom and banking ADRs were among the other stocks that ended higher for the week.
More Views on News
Jul 25, 2017
Equitymaster HQ has been infiltrated. Valuable stock ideas have been leaked. Who's responsible?
May 27, 2017
What happens when minority shareholders are short-changed in the normal course of business?
Feb 15, 2017
PersonalFN believes SEBI has taken a step back-apparently in the admission of it going overboard with the regulations.
Aug 24, 2016
And here's your chance to claim a free copy of this book...
Aug 12, 2016
And Why India's demographic dividend could turn out to be a doubtful debt...
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 4, 2017
The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.
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