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: Uncertainty looms large - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Aug 9, 2003

    Global markets: Uncertainty looms large

    US markets were a mixed bag this week. While the Dow managed to keep the upward momentum going and rose marginally, the NASDAQ witnessed five consecutive days of distress to end the weak losing around 4%.

    The week started on a strong note for the Dow. Reports showing signs of strength in factory orders cheered the markets on Monday. Also, economic reports released during the previous week (ended August 1, 2003) further added to the positive sentiments. However, pressure on technology and internet stocks led to the fall on the Nasdaq. On Tuesday, however, both the Dow and the NASDAQ witnessed weakness on account of poor reports on the unemployment front. Reports on monthly job cuts indicated that the numbers were higher by about 43% for the month of July.

    Wednesday saw the Dow gain once more. This was supported by gains in auto and financial stocks. Weakness on the NASDAQ was compounded by Cisco’s poor-than-expected results. On Thursday, positive economic reports coupled with dropping yields due to strong demand for the US Treasury bills led to gains on the Dow. Also, weekly unemployment numbers, which were released during the day, were below the benchmark levels and this added to gains on the Dow. This was the third consecutive week when the unemployment numbers closed lower than the benchmark levels. This indicates some signs of improvement in the labor markets, which is a positive for the US economy. A preliminary report on non-farm productivity also reported better than expected growth.

    India scores...
    Indices 2-Aug-03 9-Aug-03 Change
    BSE 3,815 3,884 1.8%
    FTSE 4,098 4,148 1.2%
    Dow 9,154 9,191 0.4%
    Nikkei 9,612 9,328 -3.0%
    Hang Seng 10,249 9,945 -3.0%
    Dax 3,439 3,332 -3.1%
    NASDAQ 1,716 1,644 -4.2%

    Over the week, the Sensex was the top gainer. However, the Japanese Nikkei witnessed its biggest slump in almost four months. Decline on the Nikkei was led by pressure on technology stocks. Also, rising prices of fuel had an adverse effect across stock markets in the Asia Pacific region. The biggest loser for the week was NASDAQ, and any sign of improvement on the same is likely to be dependent on the fortunes of the technology sector globally.

    While signs of improvement are witnessed in the US and other global markets, the sustainability of this growth is still very unclear. And it will be a few more quarters before some clarity on this account occurs. Investors, thus, need to exercise utmost caution and should not move with the herd, as definite signs of sustainable long-term growth are still unclear.

    Tech-pressure continues...
    (Price in US $) 2-Aug-03 9-Aug-03 Change
    Satyam Infoway 6.0 10.2 70.0%
    VSNL 4.9 5.2 6.1%
    Dr. Reddy's 22.2 23.0 3.6%
    Silverline 1.6 1.6 1.9%
    HDFC Bank 22.1 22.5 1.9%
    MTNL 5.3 5.3 -0.4%
    Infosys 53.8 52.5 -2.4%
    Wipro 23.5 22.8 -2.9%
    Satyam 10.5 10.2 -2.9%
    ICICI Bank 8.4 7.8 -6.6%
    Rediff 6.7 5.4 -19.5%

    The story for Indian ADRs also moved in line with the fortunes of the US indices. While technology ADRs, Infosys, Wipro, Satyam and Rediff all witnessed downward movement others reflected a mixed picture. Satyam Infoway was the biggest gainer, while Rediff lost the most. After its sponsored issue opening at a premium, Infosys’ ADR witnessed a decline.



    Equitymaster requests your view! Post a comment on "Global markets: Uncertainty looms large". 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.

    Will They Haul Off Trump's Statue, Too? (Vivek Kaul's Diary)

    Aug 16, 2017

    All across the country, the old gods become devils. New, gluten-free gods take their places...

    This Company Beat the Business World's 'Three Killer Cs' (The 5 Minute Wrapup)

    Aug 16, 2017

    And what it has in common with beating the stock market too.

    5 Steps To Become Financially Independent (Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Let's Hope This Correction Continues (The 5 Minute Wrapup)

    Aug 14, 2017

    Last week's correction is making a number of Super Investor stocks look a lot more attractive...

    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.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    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...

    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


    Aug 16, 2017 (Close)