Anxiety casts a shadow… - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Anxiety casts a shadow…

Sep 27, 2008

Amidst global financial turmoil the Indian benchmark indices continued their southward journey this week, with the BSE Sensex shaving off almost 1,000 points in the past 5 days. There was widespread nervousness among investors as bad news continued to trickle in about banks and financial institution in the US going bust one after the other. However, expectation of a financial bailout plan from the US government is keeping investors’ hope alive. Meanwhile, the domestic economy continued to reel under inflation (measured in terms of WPI) in excess of 12%. The passing of the Indo-US nuclear deal by the US Congress is also being eagerly looked forward to.

  • Also read – Economy is like a bathtub…

    Here is a pictorial representation of how the world and Indian equity markets performed during the week.

    Indian stocks - Movers and shakers during the week
    Company19-Sep-0826-Sep-08Change52-wk High/LowChange from 52-wk High
    Top gainers during the week (BSE-A Group)
    Sesa Goa 109 117 7.1%220 / 99-46.9%
    Asahi India 50 54 6.5%137 / 45-60.8%
    NMDC 218 232 6.5%547 / 172-57.6%
    HCL Infosys 97 103 6.0%300 / 93-65.8%
    Sun Pharma 1,393 1,466 5.2%1558 /890-5.9%
    Top losers during the week (BSE-A Group)
    Ranbaxy 357 272 -23.8%614 / 269-55.7%
    Oracle Fin. Service 975 794 -18.6%1975 / 782-59.8%
    Wipro 417 344 -17.5%552 / 325-37.7%
    Praj Ind Ltd. 151 129 -14.6%273 / 100-52.7%
    Mphasis Ltd. 217 186 -14.3%321 / 150-42.1%
    Source: Equitymaster

    The week’s biggest news
    In a strategic move HCL Technologies has made a counter offer to acquire UK-based SAP consulting company Axon Group at 8.3% higher price of 650 pence a share, for which Infosys had earlier offered Axon shareholders 600 pence a share. The deal is important for both the IT firms.

    If HCL Technologies is successful in acquiring Axon, it will catapult the company to the 12th position in terms of SAP implementation globally. If Infosys counters the bid successfully, it will emerge as the 10th largest SAP player.

    The acquisition of Axon will bring 2,000 employees with capabilities in business consulting and business transformation, which will be beneficial for the acquirer in the long run. This will help the acquirer move up the software value chain and expand geographical presence.

  • Infosys acquires Axon: Our view

    What to expect?
    In volatile times such as these, when markets are moving southwards and all the news are casting shadows of pessimism, investors need to retain their calm. Investing is about intelligently and rationally choosing the companies that are best poised to produce wealth over the long-term. We are of the opinion that it is times like these when investors should roll up their sleeves in search of fundamentally sound companies going at attractive valuations. As Benjamin Graham says – “The individual investor should act consistently as an investor and not as a speculator. This means that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money's worth for his purchase.”


  • Equitymaster requests your view! Post a comment on "Anxiety casts a shadow…". Click here!

      

    More Views on News

    BSE Sensex Surges 600 Points; BAJAJ AUTO Among Top Gainers (Market Updates)

    Oct 1, 2020 | Updated on Oct 1, 2020

    The BSE Sensex Surged 600 Points; BAJAJ AUTO Among Top Gainers. Find the latest update, special reports and news on all time high gainers of BSE Sensex at equitymaster.com.

    Nippon India Nifty Smallcap 250 Index Fund: High Risk in Passive Mode (Outside View)

    Oct 1, 2020

    PFN explains about the Nippon India Nifty Smallcap 250 Index Fund.

    You Should Be looking for Small-cap Stocks that Will Rebound Strongly (Profit Hunter)

    Oct 1, 2020

    This single trait in excellent small cap businesses differentiates them from the rest.

    This Number Will Give You an Edge Over Other Traders in the Market (Fast Profits Daily)

    Sep 30, 2020

    In this video, I'll share with you, a crucial number that I track everyday which gives me trading edge.

    Is Mirae Asset Ultra Short Duration Fund a Right Solution for Your Short Term Needs? (Outside View)

    Sep 30, 2020

    PFN explains about the Mirae Asset Ultra Short Duration Fund.

    More Views on News

    Most Popular

    Safe Stocks

    Here are some insights on why buying safe blue chip stocks is not the easiest task in investing.

    My Top Stock to Buy in this Market Selloff (Profit Hunter)

    Sep 22, 2020

    The recent correction offers a great opportunity to buy this high conviction smallcap stock.

    Can the Nifty Fall to 10,200? (Fast Profits Daily)

    Sep 24, 2020

    The Nifty has reached an important support level today. If it breaks then we could see further downside.

    What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

    Sep 18, 2020

    Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

    I Believe These Stocks Will Deliver the Most Outsized Returns in 2021 and Beyond (Profit Hunter)

    Sep 23, 2020

    Rules of the racetrack can help you bag the biggest gainers of the coming decade.

    More

    Covid-19 Proof
    Multibagger Stocks

    Covid19 Proof Multibaggers
    Get this special report, authored by Equitymaster's top analysts now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE SENSEX


    Oct 1, 2020 01:31 PM

    MARKET STATS