Global markets bounce back - 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?  

Global markets bounce back

Oct 6, 2003

US markets, after having witnessed weakness during the second half of September, managed to stage a comeback and closed last week in the positive. While the Dow gained about 3%, the NASDAQ closed higher by about 5%. The week started on a positive note on account of buying witnessed in technology and semiconductor stocks. News that the global chips sales for the month of August rose 4% as compared to July, increased investor optimism towards the sector.Markets remained mixed for the next two days. Sun Microsystems issued a warning on Tuesday indicating that its first quarter losses would be much higher than expected, which led to weakness on the US bourses. The impact of the news was also reflected in the losses of other technology stocks. However, the markets bounced back on Wednesday on the back of positive economic reports regarding manufacturing sector and construction spending. Auto stocks were also a part of the rally on account of positive news regarding increase in volumes sales for the auto majors.

The northward movement continued towards the rest of the week. However, a slew of economic reports, which gave mixed signals about the growth of the US economy, led to volatility on Thursday. While the weekly unemployment numbers were encouraging, poor factory orders dampened sentiments to some extent. On Friday, however, the markets continued to gain ground on account of positive news regarding jobs growth. It must be noted that in the last eight months, the markets have added jobs for the first time in the month of September, which provided cheers to investors on the US bourses.

(Price in US $)27-Sep-034-Oct-03Change
Satyam12.714.312.6%
Infosys67.873.78.6%
HDFC Bank21.222.98.1%
Wipro29.431.77.8%
VSNL5.25.67.7%
Dr. Reddy's22.824.47.0%
Satyam Infoway6.16.56.6%
ICICI Bank10.611.26.3%
Rediff6.06.34.9%
MTNL5.25.43.1%
Silverline1.11.10.0%

Backed by strong gains on the domestic bourses, Indian ADRs continued to gain ground last week. Software ADRs continued to be the top gainers. It should be noted that technology stocks have been gaining ground since the last two months on account of hopes of an increase in global IT spending. Moreover, the Indian tech majors are due to announce their quarterly results and the markets seem to be expecting, not only matched expectations, but improved earnings guidance from Indian tech bellwethers. On the pharma front, Dr. Reddy’s, after witnessing weakness for the latter half of September, gained ground during last week. It should be noted that Indian ADRs have gained significant ground over the past few months and most of the ADRs are trading near their 52-week highs.

Indices27-Sep-034-Oct-03Change
NASDAQ1,7921,8814.9%
Hang Seng11,29011,8024.5%
Nikkei10,31810,7404.1%
BSE4,3834,5533.9%
FTSE4,1574,2742.8%
Dow9,3139,5722.8%
Dax3,3253,4002.3%

Global indices also closed last week in the positive. Top gainers included NASDAQ (5%), Hang Seng (5%), Nikkei (4%) and BSE Sensex (4%). News regarding job growth in the US during the month of September increased investor confidence, further cementing the belief of a US recovery. Any positive news in the world’s largest economy (USA) is seen as a positive sign globally and this was one of the reasons for optimistic sentiments witnessed during last week for major world indices. However, caution needs to be exercised, as the economic reports still remains mixed and signs of recovery continue to remain hazy.

Equitymaster requests your view! Post a comment on "Global markets bounce back". Click here!

  

More Views on News

The Top 6 Artificial Intelligence Plays in India (Views On News)

Dec 6, 2021

Investors looking to tap into AI theme need to keep an eye on tech firm leveraging the power of AI are making things possible.

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

All You Need to Know about the Newly Launched Bharat Bond ETF 2032 (Outside View)

Dec 7, 2021

Bharat Bond ETF - 2032 is a new fund offer that will follow a buy-and-hold investment strategy tracking the constituents of Nifty Bharat Bond - April 2032 index.

Stocks You Should Buy, Even if the Market Falls (Profit Hunter)

Dec 7, 2021

Here is how to approach smallcap investing as markets get nervous.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Dec 7, 2021 12:32 PM

MARKET STATS