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: Oil price cheers... - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Aug 28, 2004

    Global markets: Oil price cheers...

    With some pressure easing off on crude prices and absence of any negative economic news, the US indices edged higher for the week. Both Nasdaq as well as Dow scaled 1% each.

    After last week's gains, investor buying remained a little subdued and markets started the fresh week amidst declines. What also led to the selling was lowering of August sales forecast by retail giant Wal-Mart, thus sparking fears of economic slowdown. The lackluster behaviour continued on Tuesday also and markets ended little changed despite another drop in oil prices. However, the fourth consecutive session of an oil price drop on Wednesday and that too by a significant 4% brought back cheers and the indices witnessed strong gains. Infact, Dow closed at its highest in nearly six weeks. Low volumes continued to haunt the markets for the next two days with the indices largely circling around the breakeven. However, the strength during the early part of the week was enough for the indices to register a reasonable 1% gain during the week.

    Indices 20-Aug-04 27-Aug-04 Change
    NASDAQ 1,838 1,862 1.3%
    Hang Seng 12,377 12,818 3.6%
    Nikkei 10,889 11,210 2.9%
    BSE 5,065 5,117 1.0%
    FTSE 4,369 4,490 2.8%
    Dow 10,110 10,195 0.8%
    Dax 3,713 3,851 3.7%

    Buoyancy was also witnessed among various indices across the globe. Edging higher by a significant 4%, Hong Kong benchmark, Hang Seng emerged as the highest gainer during the week. Not far behind with gains of 3% was its Japanese counterpart, Nikkei. This was despite indication by some economic reports that Japanese household spending has been falling and all is not rosy on the employment front as well. The buying was probably in anticipation of Fed chairman's speech whereby he is expected to uphold the optimistic outlook of the US economy, a good sign for exporting country like Japan. Falling crude prices and stable US economic figures also helped the major European indices to post strong gains during the week.

    (Price in US$) 20-Aug-04 27-Aug-04 Change
    Dr.Reddy's 15.5 15.6 1.0%
    ICICI Bank 12.2 12.4 1.3%
    Infosys 49.4 50.5 2.4%
    MTNL 6.7 6.6 -1.1%
    Rediff 6.7 7.5 11.6%
    Satyam 20.3 19.8 -2.5%
    VSNL 7.4 7.3 -1.2%
    Wipro 17.0 16.7 -1.8%

    Indian ADRs witnessed mixed activity during the week. However, no particular sector witnessed across the board buoyancy and it was the individual ADRs that witnessed buying or selling interest. Among the gainers, dotcom major, Rediff led the pack with gains of nearly 12%. On the other hand losing nearly 3%, tech major Satyam emerged as the biggest loser. Infosys with gains of 2% was the lone gainer among tech stocks. Looking at the company's 1QFY05 performance, it seems that the management's objectives of 40% and 34% growth in revenues and profits are achievable. While margins will continue to remain under pressure, a move higher up the value chain will help the company in meeting its growth targets. Pharma major Dr Reddy and ICICI Bank were among the other gainers during the week.



    Equitymaster requests your view! Post a comment on "Global markets: Oil price cheers...". 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)