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.
Directionless volatility - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • May 24, 2003

    Directionless volatility

    It was a see-saw week for the indices. They witnessed a lot of volatility throughout the week displaying no definite trend. Both the Sensex and the Nifty closed marginally below last Friday’s levels. Movement of the indices once again displayed signs of confusion and lack of investor confidence. Short-term concerns continue to stay at the top of investor’s minds.

    However, one indication, which seems to emanate since the last couple of weeks, is the fact that investors are now looking at old economy stocks as investment options. With the manufacturing sector showing resilience despite poor monsoons last year and rains likely to be normal in the current fiscal, investors are finding value in select old economy stocks. Software stocks continued to be weak on the bourses. With the rupee showing no signs of weakening, concerns over software earnings getting adversely affected ruled strong. Moreover, it seems that the billing pressure (due to sluggish growth in the US) on Indian software companies are here to stay for a while.

    Top 5 gainers over the week
    COMPANY Price on May 16 (Rs) Price on May 23 (Rs) %CHANGE 52-WEEK H/L (Rs)
    BSE-SENSEX 3,057 3,050 -0.2% 3,417 / 2,828
    S&P CNX NFTY 973 968 -0.5% 1,106 / 920
    IDBI 19 25 29.8% 28 / 15
    CHENNAI PETRO 45 57 25.6% 60 / 25
    BANK OF BARODA 109 129 18.3% 133 / 44
    BATA INDIA 31 37 17.4% 51 / 26
    E-MERCK 237 277 17.1% 340 / 217

    IDBI was one of the key gainers this week. Sentiments towards the stock perked up primarily on the back of speculation that the Ministry of Finance has given an in-principle approval for the conversion of the financial institution into a bank. Also, another news doing the rounds of markets was the likeliness of the government sanctioning a relief package for IDBI. Among the prominent losers (7 out of the top 10), software stocks dominated the list.

    Top 5 losers over the week
    COMPANY Price on May 16 (Rs) Price on May 23 (Rs) %CHANGE 52-WEEK H/L (Rs)
    POLARIS SOFTWARE 136 115 -15.2% 285 / 108
    HCL TECH 142 121 -14.3% 251 / 119
    DSQ SOFTWARE 10 9 -14.1% 33 / 7
    TRIGYN TECHNOLOGIES 15 13 -13.3% 54 / 10
    WIPRO 944 821 -13.1% 1762 / 800

    Among other key events during the week, the crucial decision on interest rates for EPF is to be taken by the Employees Provident Fund Organisation. On another front, due to the spectacular run of banking stocks on the bourses, the market capitalisation of banking stocks has surpassed that of the IT stocks. However, we continue to advocate caution while investing, in these sectors. Having said that we continue to believe that Indian equities are a good long-term play and India (amidst global concerns) seems well placed to show encouraging growth going forward, which is likely to lead to handsome returns for investors.



    Equitymaster requests your view! Post a comment on "Directionless volatility". 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.

    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.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    Trump Takes a Beating (Vivek Kaul's Diary)

    Aug 18, 2017

    Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    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.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    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.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    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: 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 18, 2017 (Close)