Aug 30, 2003|
Global markets: Recovery mode?
US indices continued to gain ground during this week also. While the Dow was up by about 1%, the NASDAQ rose by about 3% during the week. Despite the weakness witnessed at the start of the week, markets regained strength as they build on gains for the remaining days of the week.
Tuesday’s economic reports, on consumer durable goods order and consumer confidence, enthused investors, which was reflected by the gains on the indices. On Wednesday also, the NASDAQ gained ground on account of buying witnessed in technology stocks, however, the Dow lost marginally.
Markets continued to witness buying for the next two days (Thursday and Friday) also and this was again on account of better economic reports. On Thursday, economic reports indicating an upward revision in 2nd quarter GDP growth and signs of improving labor markets cheered investor sentiments on the US bourses. Friday’s positive economic news regarding regional manufacturing index and also higher consumer spending led to further gains on indices towards the closing session on Friday.
|(Price in US $)
Indian ADRs continued to gain ground during the current week. Technology stocks were among the top gainers. It must be noted that tech laden NASDAQ also rose during the week on account of buying in technology stocks. This was reflected in the software ADRs also. Top gainers included Wipro (16%), Satyam (9%) and Infosys (5%). ICICI Bank also gained ground during the week. The ADR is trading at its 52-week highs.
As can be seen in the table above, Indian markets topped the charts this week when compared to global markets. Top gainers were BSE (3%), NASDAQ (3%) and Hang Seng (1%). Indian markets have witnessed a significant rally in the last four months on account of better results from Corporate India and also positive signs regarding the improving economy. While other Asian markets also continued to gain during the week, the European markets witnessed some pressure during the week and they closed in the red.
Markets globally have witnessed considerable run up during the past few months. Primary reason for this is the better than expected recovery in the world’s largest economy, the United States with strong 2nd quarter GDP growth and signs of improving labor markets. However, still there are no clear signs of a full-fledged recovery and one must exercise caution on this front.
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