Looking for warmth - Views on News from Equitymaster

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

  • MyStocks

MEMBER'S LOGINX

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

Looking for warmth

Jul 20, 2002

It's freezing out there! You don't believe us. Well, the Dow lost 7.7% this week and the NASDAQ 4%. In the last two weeks, both global benchmark indices have lost 15% and 9% of market cap respectively. Infact, the NASDAQ is hovering at levels seen in April 1997 and the Dow is at 4-year lows. The BSE Sensex too, lost over 2% during the week. The Sensex has seen only 5 stocks gaining ground in the past week. These are MTNL, Glaxo, Dr. Reddy, Ranbaxy and Bhel. So effectively, it has been either PSUs or pharma counters that have emerged stronger over the week. The reasons for this are not difficult to decipher.

MTNL seems to be gaining ground based on its progress in cellular telephony. It had an estimated 110,000 clients by end of FY02. Besides, the recent ruling by TRAI on the WiLL front has benefited MTNL in a large way. The company has around 27,000 CDMA subscribers. On the other hand, Bhel with a huge order backlog of Rs 120 bn in April 2002, is giving big signals of a continuous recovery in performance.

Ranbaxy's stupendous 2QFY03 numbers seemed to have inculcated a buying spirit in domestic pharma counters. The company declared 46% topline growth and a huge 190% bottomline growth during the quarter. Operating margins improved YoY by approximately 500 basis points.

If we take a look at the top losers this week, two wheeler majors Hero Honda and Bajaj Auto head the list. Both seem in a profit-taking mode. Also, the spat in the Bajaj family may be affecting sentiment on the Bajaj Auto counter. The list also includes 3 software stocks, almost all cement majors, and the big 3 i.e. Reliance, RPL and HLL.

The monsoon scare was one of the key spoilsports for the Sensex pivotals especially cement counters and HLL. The Reliance group getting bad press over some accounting irregularities largely meant that the Sensex would have a dull week.

Luckily the sage from Omaha, Mr. Warren Buffet, has taken his first steps towards exposure to technology. That should generate some heat in the shivering Wall Street. For the Indian bourses, the monsoon scare seems to be waning. But weakness in Wipro may dog the Nifty in the week to come.


Equitymaster requests your view! Post a comment on "Looking for warmth". Click here!

  

More Views on News

BSE Sensex Surges 707 Points; BHARTI AIRTEL Among Top Gainers (Market Updates)

Sep 25, 2020 | Updated on Sep 25, 2020

The BSE Sensex Surged 707 Points; BHARTI AIRTEL Among Top Gainers. Find the latest update, special reports and news on all time high gainers of BSE Sensex at equitymaster.com.

Your Queries on the 8-Year Cycle Answered (Fast Profits Daily)

Sep 25, 2020

You've sent in your queries on my videos on the 8-year greed and fear cycle in the market. I'll answer them in this video.

It's When You Sell that Counts (Profit Hunter)

Sep 25, 2020

How I alerted readers to the impending crash last week.

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.

How to Save Money by Exiting Stocks Before They Fall podcast (Views On News)

Sep 24, 2020

A penny saved is a penny earned. It doesn't matter where you enter. All that matter is where you exit. Watch this video to identify an opportune time to exit your investments and book profits.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

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.

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...

How Much Money Do You Need to Be a Professional Trader? (Fast Profits Daily)

Sep 17, 2020

In this video I'll answer a question I get asked often: How much capital do I really need to trade the markets for a living? Let's find out...

More

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

S&P BSE SENSEX


Sep 25, 2020 (Close)

MARKET STATS