Global markets: Technology led gains - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Global markets: Technology led gains

Jul 12, 2003

US indices continued their rally for the fourth consecutive month. While the NASDAQ closed the week higher by 4%, the Dow gained about 1% during the week. The gains on the NASDAQ were primarily garnered during the start of the week due to significant buying witnessed in technology stocks. The news about Microsoft, which is sitting on a huge pile of cash of about US$ 46 bn, considering to give about US$ 10 bn as special dividend, increased optimism towards technology stocks.Markets gained ground on the following couple of days also. News of consolidation in different sectors seemed to have boosted investor sentiments. While data storage maker, EMC announced that it would buy business software developer Legato Systems, Truck manufacturer, Yellow, also evinced interest to buy its rival, Roadway. This led to increased optimism. Alcoa, the aluminium major marked the beginning of second quarter results announcement, which were in line with expectations. However, Dow witnessed profit booking on Wednesday on account of weakness seen in heavyweight, Altria.

On Thursday, the markets were in the red. Yahoo announced its second quarter results towards the closing on Wednesday. Though it posted good results, markets seem to have had factored it earlier. This apart, weekly unemployment numbers released during the week were once again much higher than their benchmark levels. This led to the weakness seen on the US bourses. On Friday, GE announced its quarterly results. The lower earnings declared by the company was in line with market expectations. This apart, hopes of better results from Intel, Home Depot, etc. increased optimism and markets closed on a higher note on Friday. Next week will witness further quarterly results from heavyweights, which will rule sentiments going forward.

NASDAQ 1,663 1,734 4.2%
Hang Seng 9,637 9,912 2.9%
Dax 3,240 3,327 2.7%
BSE 3,622 3,676 1.5%
FTSE 4,022 4,058 0.9%
Nikkei 9,548 9,635 0.9%
Dow 9,070 9,120 0.5%

World over the markets closed on an optimistic note. NASDAQ (4%) was, however, the top gainer. Among the other major gainers were Hang Seng (3%) and the Dax (3%). Buying witnessed in technology stocks led to the gains on European indices. While Phillips narrowed its second quarter losses on the back of increased demand, Nokia also gained ground and this helped the European indices gain ground during the week. In case of Asian Indices, positive reports from the Japanese government on machinery orders and consumer sentiments fueled optimism about the recovery of its economy and this led to the gains on its indices.

(Price in US $)28-Jun-035-Jul-03Change
Satyam Infoway7.38.619.2%
HDFC Bank20.522.49.3%
Dr. Reddy's25.327.69.2%
ICICI Bank7.87.6-2.3%

Barring MTNL (5%) and ICICI Bank (2%), Indian ADRs gained ground during the week. Top gainers included Rediff (26%), Sify (19%) and Silverline Technologies (36%). Technology stocks witnessed increased optimism during the week. Infosys, the software major, announced its 1QFY04 results during the week. Apart from beating street expectations, the company has revised its FY04 guidance upward and this increased optimism towards the Indian technology sector. Telecom major, VSNL, also gained ground during the week. The government has indicated that it would divest its residual holding in VSNL and this further fueled optimism towards the stock.

World over, the markets gained ground during the week. Increased optimism towards the technology stocks across the globe, led to the gains on the indices this week. Going forward, since it is the earnings season in the US, sentiments in the month of July will primarily be governed by the results being announced by industry stalwarts. Next week will see index heavyweights like Intel, Microsoft, General Motors, Coca-Cola and Citigroup announce quarterly results, which will drive the sentiments going forward, as investors get a clue as to where the US economy is headed.

Equitymaster requests your view! Post a comment on "Global markets: Technology led gains". Click here!


More Views on News

BSE Sensex Surges 600 Points; BAJAJ AUTO Among Top Gainers (Market Updates)

Oct 1, 2020 | Updated on Oct 1, 2020

The BSE Sensex Surged 600 Points; BAJAJ AUTO Among Top Gainers. Find the latest update, special reports and news on all time high gainers of BSE Sensex at

Why I Asked My Subscribers to Sell Stocks and Move into Cash? podcast (Views On News)

Oct 1, 2020

Rahul Shah discusses his sell calls and why he asked his subscribers to move into cash.

Can the Dollar Milkshake Theory Upset Your Portfolio? (Fast Profits Daily)

Oct 1, 2020

The US government is using the dollar as a weapon. Here's how it will affect your portfolio.

Nippon India Nifty Smallcap 250 Index Fund: High Risk in Passive Mode (Outside View)

Oct 1, 2020

PFN explains about the Nippon India Nifty Smallcap 250 Index Fund.

You Should Be looking for Small-cap Stocks that Will Rebound Strongly (Profit Hunter)

Oct 1, 2020

This single trait in excellent small cap businesses differentiates them from the rest.

More Views on News

Most Popular

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

I Believe These Stocks Will Deliver the Most Outsized Returns in 2021 and Beyond (Profit Hunter)

Sep 23, 2020

Rules of the racetrack can help you bag the biggest gainers of the coming decade.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Oct 1, 2020 (Close)