Global markets bounce back - Views on News from Equitymaster

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

  • MyStocks


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
HDFC Bank21.222.98.1%
Dr. Reddy's22.824.47.0%
Satyam Infoway6.16.56.6%
ICICI Bank10.611.26.3%

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.

Hang Seng11,29011,8024.5%

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 Gold and Silver Bull Market is Not Over (Fast Profits Daily)

Sep 29, 2020

The last few days have been nerve-racking for bullion traders. Stay calm. The bull market still has a long way to go.

Earned Short Term Capital Gains on Shares? Here's What You Need to Know While Filing ITR (Outside View)

Sep 29, 2020

PersonalFN explains CBDT's clarification regarding scrip wise disclosure in ITR in case of short term capital gain.

This Smallcap is a Must Have Stock in Your Portfolio (Profit Hunter)

Sep 29, 2020

Investing in this smallcap could open doors of huge, long-lasting wealth.

Why the Market May Rally for a Few Days (Fast Profits Daily)

Sep 28, 2020

Why I think the market can rise for the next few days.

My Top Pick for 2021 is Not a Stock. It is Something Much More Powerful (Profit Hunter)

Sep 28, 2020

My top pick for 2021 is something that has helped me and my subscribers beat the stock market by a factor of 2:1.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

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...


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


Sep 29, 2020 (Close)