Long term positive - 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?  

Long term positive

Oct 12, 2002

The bourses globally had a great week. While both the Sensex and the Nifty gained over 2% each, the Wall Street too recovered. The Dow finished with over 4% gains and the NASDAQ was up over 6% during the week. But are these gains here to stay?This week 20 counters finished in the positive from the benchmark BSE Sensex and 32 counters gained on the NSE Nifty. The software counters largely led the positivism. These included Infosys, Wipro, Satyam, Digital and NIIT. Pivotal Infosys logged in a 15% topline growth sequentially in 2QFY03 to beat market expectations. While the company has not changed itís net profit guidance, it has raised the revenue guidance. Earlier Infosys had indicated of a 19% to 23% growth in revenues. However, now it expects revenues to grow in the range of 32% to 33%. The net profits are expected to grow in the range of 16% to 19% in FY02. Infosysí sterling performance along with that of Mphasis and Hughes Software perked sentiment on the domestic tech sector.

However, buying at lower levels in key index heavyweights like Reliance, Tata Power, Bajaj Auto, Hero Honda, Telco, Ranbaxy, Dr. Reddy, Cipla, Novartis, Gujarat Ambuja, L&T and ACC also aided in indices gaining overall. The buying pattern suggests that investors found the valuations attractive over the long term and took advantage of the continuous hammering of heavyweights over the last month to get in at lower levels.

On the other hand, the spurt on the Wall Street largely came in during last nightís trading. There also the trend suggests that investors may have been attracted by the low stock prices. However, there is a big difference. While India Inc. continues to grow decently even in a difficult economic environment like this, the US continues to be hit by earnings warnings, accounting scandals and is probably in a recession. No doubt, India has a long way to go before it is even mentioned in the same breath as the US in terms of economic progress and development, but the truth is that the Indian economy is growing, albeit not at the desired rate.

Going forward, the earnings season is likely to determine the short-term movement on the Indian bourses, however over the longer term, we remain positive on the strengths of India Inc.

Equitymaster requests your view! Post a comment on "Long term positive". 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'.

6 Indian Companies Betting Big on Renewal Energy (Views On News)

Dec 7, 2021

Here's the list of companies pouring in the big bucks to push India's sustainable energy industry to the next level.

Is it a Good Time to Trade OMC Stocks? (Fast Profits Daily)

Dec 7, 2021

This is how you should think about trading OMC stocks.

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 (Close)

MARKET STATS