X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Global markets: Oil down, indices up… - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 30, 2004

    Global markets: Oil down, indices up…

    Crude prices, the nemesis of the world economic growth in recent times, fell by around 8% during the week and quite understandably the US indices rejoiced and witnessed robust gains during the week. Both the Dow as well as Nasdaq edged higher by 3%.

    Although the week started off with no further escalation in crude prices, there were other events such as a plunging dollar and uncertainty surrounding next week’s presidential elections that kept the investors on tenterhooks and resulted into a largely lackluster trading on Monday. The next two days however were marked with robust gains. Insurance stocks that were hammered in the previous weeks on account of allegations of customer cheating came back into the reckoning on Tuesday as investors took comfort in some favorable news. The rally that ensued spread over to other sectors as well and resulted into broad based gains for the market.

    Bulls continued to strut their stuff on Wednesday, as crude prices, the nemesis of stock markets in recent times eased by over 5% on the back of strong weekly inventory. The news once again resulted into a broad based rally as investors suddenly became optimistic about economic growth. Although crude prices continued to ease for the next two days as well, news of China raising its interest rates and uncertainty ahead of next week’s presidential elections capped the gains and the indices failed to budge much from the levels reached during mid-week.

    Indices 22-Oct-04 29-Oct-04 Change
    NASDAQ 1,915 1,975 3.1%
    Hang Seng 13,015 13,055 0.3%
    Nikkei 10,857 10,771 -0.8%
    BSE 5,641 5,676 0.6%
    FTSE 4,615 4,624 0.2%
    Dow 9,758 10,027 2.8%
    Dax 3,935 3,960 0.6%

    Major indices across Europe and Asia however could not replicate the gains notched up by their American counterparts and most of them ended the week amidst marginal gains. As far as the European indices are concerned, falling crude prices and strength in insurance sector did result into a mid-week rally but the decline at the start of the week and concerns over Chinese economic growth stalled any further gains. Elsewhere in Asia, pressure among steel stocks on Nikkei, the Japanese benchmark, following China interest rate hikes did result into the sector stocks falling out of favor but falling crude prices and strength in the US markets helped cap the decline.

    (Price in US$) 22-Oct-04 29-Oct-04 Change
    Dr.Reddy's 16.6 16.6 0.0%
    HDFC Bank 32.2 35.2 9.3%
    ICICI Bank 14.7 15.8 7.5%
    Infosys 65.8 66.4 0.9%
    MTNL 7.4 7.9 6.8%
    Rediff 7.8 8.5 9.0%
    Satyam 25.7 26.3 2.3%
    Sify 5.6 5.9 5.4%
    Tata Motors 9.2 9.3 1.1%
    VSNL 7.3 7.6 4.1%
    Wipro 21.3 21.3 0.0%

    Among Indian ADRs, buoyancy was witnessed all across the board with the exception to tech major Wipro and pharma major Dr Reddy, as they ended unchanged for the week. With gains of 9% however, private banking major HDFC Bank and dotcom major Rediff emerged as the highest gainers. Gains in the former could be the result of robust 2QFY05 performance posted by it. Strong growth in the company's assets continued to be the main driver. The bank continued to keep its interest costs low and this has significantly helped the growth in net interest income. Strong 8% growth in another banking major ICICI bank was another highlight of the week for Indian ADRs.

     

     

    Equitymaster requests your view! Post a comment on "Global markets: Oil down, indices up…". Click here!

      
     

    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

    Aug 19, 2017

    Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    Trump Takes a Beating (Vivek Kaul's Diary)

    Aug 18, 2017

    Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE SENSEX


    Aug 18, 2017 (Close)

    MARKET STATS