X

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: Have news, shall move - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jul 3, 2004

    Global markets: Have news, shall move

    After ending mixed the previous week, a broad based weakness was observed among US indices and as a consequence both the Dow as well as Nasdaq ended lower by around 1% each for the week ended July 2, 2004.

    It was yet another week of roller coaster ride, with the markets advancing and declining with the announcement of every positive and negative news. However, it will be remembered most for the Fed policy meeting, which hiked the short term rates by an expected 25 basis points, thus throwing hints at the market that it would take a measured approach towards the same. This comforted the markets and expectedly the markets rewarded the investors with gains on Wednesday, the day the meeting was held. However, a spate of profit warnings and earnings downgrade on Thursday and lower than expected payrolls number for the month of June, were reasons enough for investors to book profits and also push the indices into the red on a week on week basis. Next week, all ears will be trained to the commencement of the earnings season, with the US corporates announcing their second quarter numbers.

    Indices 25-Jun-04 2-Jul-04 Change
    NASDAQ 2,025 2,007 -0.9%
    Hang Seng 12,186 12,220 0.3%
    Nikkei 11,780 11,721 -0.5%
    BSE 4,756 4,871 2.4%
    FTSE 4,494 4,407 -1.9%
    Dow 10,372 10,283 -0.9%
    Dax 4,013 3,999 -0.3%

    Barring a couple of Asian indices, major stock markets across the world ended the week in the red. Worst hit was the UK benchmark, FTSE that ended lower by 2%. While weak macroeconomic news emanating from the US markets did spook investors, weakness in British grocer companies further added to the woes. With major economies across the world dependent on US to sell more automobiles and other items such as drugs and consumer goods, lower than expected jobs recovery, worried investors and hence the weakness. Indian benchmark, BSE however bucked the trend and ended 2% higher for the week. For one, the Indian economy’s dependence on US is much smaller as compared to other countries and secondly, after weeks of decline, the valuations had once again started looking attractive and hence the buying interest.

    (Price in US$) 25-Jun-04 2-Jul-04 Change
    Dr.Reddy's 17.1 17.1 0.0%
    HDFC Bank 26.8 27.1 1.1%
    ICICI Bank 12.0 11.9 -0.8%
    Infosys 93.7 95.5 1.9%
    MTNL 6.9 7.0 1.4%
    Rediff 8.4 8.0 -4.8%
    Satyam 18.9 18.4 -2.6%
    Satyam Infoway 6.4 6.2 -3.1%
    VSNL 7.1 7.8 9.9%
    Wipro* 15.6 15.3 -2.1%

    *ex-bonus

    Indian ADRs ended mixed on the US bourses during the week. While telecom ADRs shone, software and dotcom ADRs remained under pressure. Registering gains of near 10%, ILD major, VSNL, emerged as the highest gainer. The buying interest is probably due to the feeling that the worst seems to be over for the company and considering the big plans of the company in the broadband segment, profitability might well be on rise. However, we believe that though valuations may appear cheap, until there is further clarity on how its new initiatives pan out, one has to exercise caution. Tech major Infosys was the other major gainer as it edged higher by nearly 2%.

     

     

    Equitymaster requests your view! Post a comment on "Global markets: Have news, shall move". 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...

    More
    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

    S&P BSE SENSEX


    Aug 18, 2017 (Close)

    MARKET STATS