Stock markets: Sign of things to come? - 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?  

Stock markets: Sign of things to come?

Oct 19, 2002

It has been an eventful week at the US markets with the Dow gaining by nearly 800 points in the last five trading sessions. Perception that the markets have bottomed out and lack of bad news on the economic front seem to have led to this rally. During the week positive results announced by Microsoft, General Motors and IBM kept investor sentiment buoyant. However, profit warnings from chipmaker Intel and beverage major Coca Cola led to the fall on Wednesday. With no major results announcements yesterday investors took the opportunity to consolidate their portfolio and strategize for the coming week, hence the marginal movement on the bourses yesterday. The rally witnessed on Wall Street seems more of a technical correction than a fundamental one. Apart from a dip on the bourses on Wednesday the rally has sustained. No major companies are expected to announce their results in the coming week and this will give investors time to evaluate their positions. The coming week could see sideways movement of the markets, as investors would be looking to consolidate their position on the bourses.

(Price in $) 12-Oct-02 19-Oct-02 Change
Satyam Infoway 1.1 1.3 14.0%
ICICI Bank 5.8 5.9 1.7%
Dr. Reddy's 17.5 15 -14.2%
Wipro 30.5 31.1 2.0%
VSNL 4.5 4.2 -6.9%
MTNL 4.7 4.2 -11.2%
Infosys 64.8 71.7 10.7%
Rediff 0.4 0.4 2.6%
HDFC Bank 14.1 13.3 -5.7%
Satyam 9.3 10.3 10.9%
Silverline 0.7 0.7 0.0%

Indian ADRs saw a mixed performance in the last week. Infosys was able to stretch its gains in to the second week on the back of better than expected results announcement. Wipro that had gained during the beginning of the week has lost ground on Friday post results announcement but still managed to close in the positive zone.

Wipro reported a 13% growth while its net profits declined by 3% on a consolidated YoY basis. For its software services business the company reported a 1% fall in its blended billing rates, which has led to a 100 basis points drop in operating margins sequentially. While the performance of Wipro has been on expected lines but compared with Infosys the results seem a bit lacklustre. Satyam on the other hand has been rising consistently on the NASDAQ on expectations of a good performance in the September quarter. The major losers were Dr Reddy’s (14%) and MTNL (11%). MTNL lost ground as reports of a possible take over by BSNL came to the fore.

Indices 12-Oct-02 19-Oct-02 Change
FTSE 3,953 4,131 4.5%
Nikkei 8,530 9,086 6.5%
BSE 2,996 3,010 0.5%
Hang Seng 8,966 9,613 7.2%
NASDAQ 1,210 1,288 6.4%
Dow 7,850 8,322 6.0%
Dax 2,931 3,164 7.9%

Positive sentiments on the US markets were well reflected on the European and Asian markets except the Indian bourses. The Indian markets remained lacklustre during the week, as there were no apparent triggers. Positive news on the earnings of software companies have already been factored and investors seem to be waiting for more good news on the earnings front. In the coming week global markets could witness some volatility on account of new geopolitical concerns. Bombings in Indonesia and Philippines has increased investor nervousness and this may be reflected on the bourses in the coming weeks.

Equitymaster requests your view! Post a comment on "Stock markets: Sign of things to come?". Click here!


More Views on News

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...

Sundaram Bluechip Fund: Will Hold the Stable Horses (Outside View)

Sep 18, 2020

PersonalFn briefly outlines the newly launched NFO note HSBC Corporate Bond Fund.

Wait! Don't Chase Smallcaps Now (Profit Hunter)

Sep 18, 2020

Let the markets take a breather before you jump in.

How Much Money Do You Need to Be a Professional Trader? (Fast Profits Daily)

Sep 17, 2020

In this video I'll answer a question I get asked often: How much capital do I really need to trade the markets for a living? Let's find out...

A Contrarian View on Whether You Should Load Up on Small Caps podcast (Views On News)

Sep 17, 2020

Rahul Shah discusses whether the SEBI circular is the perfect time to start investing in good quality small caps

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

I Recommended this Stock over Page Industries because it's Relevant to Doubling Your Income (Profit Hunter)

Sep 7, 2020

Things are not often what they seem in the market and how you can take advantage of this.

The NASDAQ Whale Could Harm Your Portfolio (Fast Profits Daily)

Sep 7, 2020

The discovery of Softbank pushing up prices on the NASDAQ will cause volatility in the market. Stay alert!

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.


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 18, 2020 (Close)