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.
Grim sentiment clouds Wall Street - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Sep 7, 2002

    Grim sentiment clouds Wall Street

    The US markets continued its lower journey in the current week. Mixed news from economy and fears of a revival in corporate profits hit the markets sentiment. US attacks on Iraq also spread nervousness in the markets.

    The week started on a dour note, as the index of factory business condition remained unchanged in August at 50.5. New orders, a key source of future growth, fell for the first time since last November. Growth in the US service sector, which forms about 80% of the economy also eased for a third straight month in August. Positive news from auto sector and lower unemployment rate however, trimmed market losses. US auto sales surged to its highest level in August 2002, up by 13%. Interest free loans and hefty cash rebates offered by auto majors to buy new vehicles, fueled volume growth. Unemployment rate also declined to 5.7% in August, lowest in last five months.

    Corporate earnings forecast were mixed. Intel lowered its third quarter revenue projections. It was however better than market expectations. On the other hand, General Motors, the world's largest automaker, raised both its earnings targets and production forecasts. Consumer products maker, Procter & Gamble, too raised its earnings expectations for the fourth straight quarter.

    Rediff on a roll
    (Price in $) 31-Aug-02 7-Sep-02 Change
    Rediff 0.4 0.4 14.3%
    HDFC Bank 14.5 14.7 1.7%
    Infosys 56.6 57.4 1.4%
    Silverline 1.0 1.0 1.1%
    Wipro 26.1 26.0 -0.4%
    Satyam 10.4 10.3 -0.6%
    Dr. Reddy's 17.9 17.8 -0.7%
    ICICI Bank 6.6 6.2 -6.8%
    MTNL 5.3 4.9 -7.6%
    Satyam Infoway 0.6 0.6 -7.9%
    VSNL 5.3 4.9 -8.3%

    Indian ADRs were up selectively. Rediff was in limelight. The stock witnessed volatile movements during the week. Telecom ADRs, VSNL and MTNL were the largest losers. Sify too declined sharply.

    Satyam was holding ground after the company announced to enter into an alliance with the US based company, Evolutionary Technologies International. Both companies together would provide end-to-end solutions to Fortune 500 companies.

    Wipro was down marginally. The company entered into an agreement to acquire the entire equity holding owned by American Express Travel Related Services Co. in Spectramind services for Rs 170 m. On completion of the transaction, Wipro's aggregate holding in Spectramind eServices will be approximately 92%. Wipro also announced the launch of a development centre at Canada. The new centre is capable of accommodating 200 software professionals.

    Weakness prevails
    Indices 31-Aug-02 7-Sep-02 Change
    BSE 3,181 3,141 -1.3%
    NASDAQ 1,315 1,295 -1.5%
    Dow 8,664 8,427 -2.7%
    FTSE 4,227 4,107 -2.8%
    Hang Seng 10,044 9,721 -3.2%
    Nikkei 9,619 9,129 -5.1%
    Dax 3,713 3,486 -6.1%

    Global markets are showing no signs of upward movement. Most of the key indices recorded losses for the second consecutive week. Continuous negative inflow of news from tech companies is likely to curtail the upward correction in the markets in the coming week.



    Equitymaster requests your view! Post a comment on "Grim sentiment clouds Wall Street". 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.

    You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

    Aug 19, 2017

    Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    Trump Takes a Beating (Vivek Kaul's Diary)

    Aug 18, 2017

    Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    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.

    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.

    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 18, 2017 (Close)