X

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: Tech ache for Nasdaq - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Aug 14, 2004

    Global markets: Tech ache for Nasdaq

    It was yet another turbulent week on the US bourses with both the Nasdaq and Dow hitting new multi-month lows. At the end of it, while the tech laden Nasdaq edged lower by 1%, Dow ended almost unchanged.

    While the markets are already under strain following record high crude prices, lower than expected results as well as grim forecasts from some Nasdaq heavyweights didn't help matters. The first to get off the block was Cisco. Although the company did post respectable results, its forecast was not exactly encouraging. Cisco was followed by National Semiconductor, which also reiterated slowdown fears in the forthcoming quarters. The weakness among tech stocks however did help Dow as rotation into blue chips helped the index post marginal gains. The most important event of the week was however the Fed policy meeting, which hiked the interest rate by another quarter of a percentage point. While this was largely along expected lines, the announcement that the economy seems to be in an expansionary mode provided some reprieve to the markets. At the fag end of the week, Dell, another Nasdaq component announced robust results and this helped the broader tech sector post gains. However it was not enough to temper the impact of the sell off earlier in the week.

    Indices 06-Aug-04 13-Aug-04 Change
    NASDAQ 1,777 1,757 -1.1%
    Hang Seng 12,479 12,360 -1.0%
    Nikkei 10,973 10,757 -2.0%
    BSE-Sensex 5,197 5,103 -1.8%
    FTSE 4,338 4,302 -0.8%
    Dow 9,815 9,825 0.1%
    Dax 3,728 3,647 -2.2%

    European as well as major Asian indices also went the American way and ended at levels not seen in months. While corporate earnings in the European continent have not disappointed, whatever gains the European economy managed to achieve was largely due to strong exports and that now seemed to have come under risk. Macro issues such as rising interest rates, climbing oil prices, high levels of debt and the risk of the Chinese economy overheating seem to be weighing heavily on the stock markets. Weakness on Wall Street and surging crude prices also affected Asian indices. Nikkei on the other hand also had to contend with weakness in the Japanese economy, which grew at a slower rate than expected during the June quarter.

    (Price in US$) 06-Aug-04 13-Aug-04 Change
    Dr.Reddy's 16.6 15.8 -4.8%
    HDFC Bank 26.5 27.4 3.4%
    ICICI Bank 12.7 12.2 -3.9%
    Infosys 46.5 45.5 -2.2%
    MTNL 6.6 6.4 -3.0%
    Rediff 6.1 5.8 -4.9%
    Satyam 18.3 18.1 -1.1%
    Sify 4.2 4.0 -4.8%
    VSNL 7.3 7.1 -2.7%
    Wipro 15.3 15.1 -1.3%

    It was yet another bad week for the Indian ADRs as barring HDFC Bank, none of them could manage gains. Worst hit were the dotcom majors Rediff and Sify and also pharma major Dr Reddy's. The company's concentration on Para IV filings has brought down the sales, as it has not got any positive approvals in last two and a half years on that front. Also, increasing competition in generics has brought down the realizations, which has lowered growth in the revenues. This has lead to the weakness in the ADR for quite some time now. Weakness among tech stocks on Nasdaq did leave its scar on Indian tech ADRs as all of them suffered significant decline during the week.

     

     

    Equitymaster requests your view! Post a comment on "Global markets: Tech ache for Nasdaq". Click here!

      
     

    More Views on News

    Insider Leaks Equitymaster Stock Picks (The 5 Minute Wrapup)

    Jul 25, 2017

    Equitymaster HQ has been infiltrated. Valuable stock ideas have been leaked. Who's responsible?

    Raymond and Other 'For Profit' Companies Who Don't Care about Shareholder Returns (The 5 Minute Wrapup)

    May 27, 2017

    What happens when minority shareholders are short-changed in the normal course of business?

    Why Commission Driven Model In Mutual Funds Should Be Eliminated... (Outside View)

    Feb 15, 2017

    PersonalFN believes SEBI has taken a step back-apparently in the admission of it going overboard with the regulations.

    This Book Changed How I Looked at the World of Man and Money (Vivek Kaul's Diary)

    Aug 24, 2016

    And here's your chance to claim a free copy of this book...

    The Developed World is Dying because of Demographics, Debt, and Deflation (Vivek Kaul's Diary)

    Aug 12, 2016

    And Why India's demographic dividend could turn out to be a doubtful debt...

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    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.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    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

    MARKET STATS