Jun 21, 2003|
Global markets: India tops again
US markets managed to close the week higher with both the Dow and the NASDAQ gaining 1% each. A strong Monday open set the tone for the week, taking the indices to their 2003 highs. The rally seen was on the back of better than expected reports on manufacturing sector for the New York State. This strengthened the hopes of a US economic recovery.
The next two days saw further gains on indices. Better than expected reports on housing, marginal increase in industrial production and a flat consumer price index, helped strengthen investor sentiment. The flat consumer price index (after falling in April) eased the deflationary concerns to some extent. On Wednesday, buying in technology stocks helped the indices gain further (Oracle had increased its bid price for PeopleSoft). However, the Dow saw some weakness and closed in the red on Wednesday.
On Thursday, profit booking crept in. Caution regarding GE's plastic business encouraged profit taking on the indices. Weekly unemployment numbers, which were better than expected, failed to boost sentiment. On Friday, profit booking continued on the NASDAQ while the Dow closed higher on account of index heavyweight General Motors' positive outlook indicating strengthening auto sales in 2003. Next week will see a further slew of economic reports, which may define the market direction going forward.
Globally, markets closed higher for the week. Among them, Indian markets topped the charts posting over 4% gains. Rally in Indian markets was led primarily by index heavyweights. Positive news regarding US economic reports led to the gains even in Asian and European markets. For Europe, exports account for about 20% of their GDP and hence positive news in US economic front helped these markets gain strength. Even Asian markets gained strength on the hopes of increased exports.
|(Price in US $)
Indian ADRs, which were weak last week, bounced back this week. Rediff (50%) and Sify (24%), which were hammered last week, gained sharply and were among the top gainers. Technology ADRs too gained during the week. Satyam won a long-term contract with World Bank amidst stiff global competition. This led the stock to gain about 10%. Even Wipro gained strength and was up 16%. VSNL also gained significantly during the week (up 10%).
As mentioned earlier, the coming week will see a slew of economic reports and this will set the mood of investors. This apart, the policy setting meeting of Federal Reserve to decide interest rates direction will be of more interest and will play a major role in driving investor sentiment. Moreover, the outlook regarding corporate America's quarterly performance will also play a part in the indices fortunes. Back in India, FIIs confidence in the Indian markets is strengthening further. This is indicated by the fact that the total FII investments (Rs 51.8 bn) so far during 2003 have already surpassed their investments (Rs 36.7 bn) in 2002.
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