Global markets: Uncertainty looms large - 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?  

Global markets: Uncertainty looms large

Aug 9, 2003

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...
Indices2-Aug-039-Aug-03Change
BSE3,8153,8841.8%
FTSE4,0984,1481.2%
Dow9,1549,1910.4%
Nikkei9,6129,328-3.0%
Hang Seng10,2499,945-3.0%
Dax3,4393,332-3.1%
NASDAQ1,7161,644-4.2%

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-039-Aug-03Change
Satyam Infoway6.010.270.0%
VSNL4.95.26.1%
Dr. Reddy's22.223.03.6%
Silverline1.61.61.9%
HDFC Bank22.122.51.9%
MTNL5.35.3-0.4%
Infosys53.852.5-2.4%
Wipro23.522.8-2.9%
Satyam10.510.2-2.9%
ICICI Bank8.47.8-6.6%
Rediff6.75.4-19.5%

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

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'.

ONGC to NMDC: Here are 5 Stocks Value Investors Should Closely Track (Views On News)

Nov 26, 2021

Before investing in value stocks, research the company and gain insight into why the market is discounting it.

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.

Shriram Properties to Hit the Bourses on 8 December. Here's What You Should Know Before Applying (Views On News)

Dec 4, 2021

This will be the second public listing of a property firm after Macrotech Developers Rs 25 bn IPO in April.

Equitymaster's Smallcap Guru on How to Invest in Smallcap Stocks in 2022 and Beyond (Views On News)

Dec 4, 2021

Equitymaster's lead smallcap analyst on how smallcap companies performed this year, the biggest opportunities for them, and a lot more.

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.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

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

S&P BSE SENSEX


Dec 6, 2021 09:00 AM

MARKET STATS