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.
One-way traffic! - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Sep 6, 2003

    One-way traffic!

    It was yet another positive week on the bourses. Despite concerns regarding the premise of this rally in the last few days, there seem to be on looking for investors at the current juncture. Though there was some correction witnessed on Wednesday, it was short-lived. While the Sensex closed the week with gains of 2.9%, the Nifty managed to notch gains of 3.1%.

    Software stocks were in the limelight in the week gone by. This is evident from the chart above which shows the BSE IT Index vs the BSE Sensex. The BSE IT Index gained 11% over the week. Some key gainers were Wipro (17%), HCL tech (15%), Satyam (11%), Infosys (8%) and Hughes Software (7%). However, are the recent gains in the software sector justified? For an analysis of the same read:Software: Why the spurt?

    Pharma stocks remained a mixed bag in the current week after the significant run up seen on the bourses over the last couple of weeks. The primary reason for the hype in pharma stocks seemed to be the fact that the WTO members have finally agreed on a draft resolution regarding the licensing of life-saving drugs to least developed countries. However, there is a lack of clarity on this front at this point in time and it remains to be seen how things unfold. For further analysis of the same read:WTO Agreement: The fine print

    Top 5 gainers over the week
    COMPANY Price on August 29 (Rs) Price on September 5 (Rs) % CHANGE 52-WEEK H/L (Rs)
    BSE-Sensex 4,245 4,369 2.9% 4,372 / 2,828
    S&P CNX NIFTY 1,357 1,398 3.1% 1,401 / 920
    EIH ASSO. HOT. 17 22 28.2% 22 / 7
    SESA GOA 210 263 25.0% 269 / 57
    GUJARAT NARMADA 43 54 23.8% 55 / 24
    SUPREME IND. 128 157 22.7% 166 / 75
    Wipro 1,066 1,247 17.1% 1,762 / 791

    As can be seen in the table above, apart from Wipro, another key gainer was Sesa Goa. In fact, steel stocks shot into favour this week again. This is on the back of the news that Nippon Steel of Japan, the world's 3rd largest steel producer (over 30 MT), had disruptions in one of its coke plant, which could affect its steel production in the near-term. However, we feel that the upside for steel prices (up 18%-20% since March 2003) will be minimal. Even if steel prices increase, it will be a temporary phenomenon. The key gainers over the week in the steel sector were Tisco (6%), Jindal Steel (17%) and Sesa Goa (25%). The positive news for the company is that it is the major exporter of coke, the raw material required or steel production.

    Top 5 losers over the week
    COMPANY Price on August 29 (Rs) Price on September 5 (Rs) % CHANGE 52-WEEK H/L (Rs)
    TATA FINANCE 43 38 -11.0% 62 / 14
    IDBI 38 34 -9.8% 51 / 15
    INGERSOLL RAND 299 271 -9.5% 302 / 191
    PENTAMEDIA 12 11 -9.2% 33 / 7
    NIRMA LTD. 440 400 -9.1% 460 / 220

    While the markets have gained strongly (46% since April 2003), there have been increasing concerns regarding the sustainability of the same. We would like to caution investors that in a bull rally, even the most non-fundamental stocks appreciate, sometimes many folds! Investors should keep away from such stocks and rather invest for a longer term in fundamentally sound companies rather than speculating on penny stocks for a quick buck.



    Equitymaster requests your view! Post a comment on "One-way traffic!". 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.

    Were You Lured By Mr Market's Bait? (The 5 Minute Wrapup)

    Aug 23, 2017

    Mr Market lured investors into believing they'd bitten into a crash. Did you take the bait?

    Deep State First (Vivek Kaul's Diary)

    Aug 23, 2017

    Nowhere was the darkness deeper than in the nation's capital. There, no light shone. No flicker of awareness...observation...learning...or reflection appeared.

    Why Hasn't Warren Buffett Rung the Bell Yet? (The 5 Minute Wrapup)

    Aug 22, 2017

    It's surprising Warren Buffett hasn't warned investors about the expensive stock market? Let us know why.

    Think Twice Before You Keep Money In A Savings Bank Account (Outside View)

    Aug 22, 2017

    Post demonetisation, a cut in bank savings deposits rates was in the offing.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

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

    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!

    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 23, 2017 (Close)