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.
Immunity amidst concerns - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Aug 17, 2002

    Immunity amidst concerns

    After having gained nearly 5% in the previous week, the US markets took a breather this week. While the Dow ended flat, the NASDAQ continued to move higher. But for the year, the Dow is down 12.4%, the NASDAQ down 30.2% and the S&P 500 has lost 19.1%.

    Economic data ruled the trend in blue-chip stocks, which ended lower. Consumer sentiment index fell to 87.9 in early August, compared with 88.1 in July. The business condition (activity) index also dropped to negative 3.1 in August from positive 6.6 in previous month, its first negative reading this year. A reading below zero indicates contraction in business sentiment. During the week, The Federal Reserve left the interest rates unchanged at 40 year lows. The central bank however, pointed towards weak economic conditions, dampening investor confidence.

    The NASDAQ was driven by Dell Computers, the No. 2 PC maker, which reported higher second quarter earnings, as against loss in the comparable quarter in the previous year. The company also raised its sales expectations for the current quarter and indicated that it will continue to steal market share from competitors. Upbeat forecast from Dell boosted the beleaguered tech sector.

    Tech stocks rebounds
    (Price in $) 10-Aug-02 17-Aug-02 Change
    Silverline 0.9 1.1 27.1%
    ICICI Bank 5.6 6.0 7.9%
    Satyam 8.8 9.4 6.1%
    Satyam Infoway 0.6 0.6 5.3%
    MTNL 5.3 5.5 4.8%
    Infosys 52.2 53.7 2.9%
    VSNL 5.0 5.1 1.4%
    Dr. Reddy's 18.0 18.0 0.1%
    HDFC Bank 14.2 14.1 -1.0%
    Wipro 24.9 24.0 -3.7%
    Rediff 0.4 0.3 -19.3%

    Satyam group companies were in limelight this week. Silverline too soared by over 27%, recouping most of its losses recorded in the previous fortnight. The stock could be attracting buying interest on account of its lower valuations. The company’s book value (as reported) is over US$ 2, while the stock is trading near US$ 1. However, the book value could be higher as the company provides lower depreciation.

    Infosys was up by 3%. The company has been assessed at the Level 5 on the PCMM model by KPMG Consulting, becoming the first company in the world to be assessed at the optimizing level on the updated version of the model. The model helps software companies increase their ability to attract, develop, motivate, organise and retain the talent needed to continuously improve their software development capabilities. Meanwhile, Infy indicated pricing pressure in its key market, the US. It however expects to meet its revenue forecast for the current fiscal.

    Wipro lost steam after the company announced restatement of its first quarter profits. Wider losses at its medical equipment joint venture, Wipro GE Medical Systems, has resulted in lowering of its quarterly net profits to Rs 1.4 bn from Rs 1.6 bn reported earlier (loss of Rs 186 m from this joint venture).

    NASDAQ regains glory
    Indices 10-Aug-02 17-Aug-02 Change
    NASDAQ 1,306 1,361 4.2%
    BSE 2,976 3,066 3.0%
    Hang Sang 10,014 10,265 2.5%
    Dow 8,745 8,778 0.4%
    FTSE 4,322 4,330 0.2%
    Dax 3,761 3,685 -2.0%
    Nikkei 10,000 9,788 -2.1%

    The US markets climbed higher for the second consecutive week. The markets seem to be getting immune from flurry of news including bankruptcy filings, accounting inaccuracies and mixed corporate business outlook. However, selling pressure at higher levels cannot be overruled considering the prevailing weakness in the economy.



    Equitymaster requests your view! Post a comment on "Immunity amidst concerns". 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)