Looking for warmth - 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?  

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

The Top 6 Artificial Intelligence Plays in India (Views On News)

Dec 6, 2021

Investors looking to tap into AI theme need to keep an eye on tech firm leveraging the power of AI are making things possible.

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

All You Need to Know about the Newly Launched Bharat Bond ETF 2032 (Outside View)

Dec 7, 2021

Bharat Bond ETF - 2032 is a new fund offer that will follow a buy-and-hold investment strategy tracking the constituents of Nifty Bharat Bond - April 2032 index.

Stocks You Should Buy, Even if the Market Falls (Profit Hunter)

Dec 7, 2021

Here is how to approach smallcap investing as markets get nervous.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 7, 2021 03:07 PM