Nov 23, 2002|
Stock Markets:Uncertain week ahead
The US markets gained for the 7th straight week at close of the current week. The tech heavy NASDAQ has been more buoyant than the Dow in the recent past. Investors are preparing themselves for the ‘thanksgiving’ holiday next week, which is considered auspicious by many. Better than expected economic news has been the major motivating factor for investors during the week. Lack of clarity on the Iraq issue may keep investors on the back foot for the time being and may pare the gains to a certain extent in the coming week.
The major economic indicators that are likely to be released next week are the commerce Department second look at third-quarter gross domestic product. October personal income and spending report is another one of the much sort after reports coming out the next week. The holiday mood may overlook to a certain extent the bad news if any on the economic front. The coming week could see some profit booking on the tech counters, as the current levels do not seem sustainable.
|(Price in $)
The week was dominated by Indian software ADRs. Performance of other Indian ADRs remained largely lacklustre. After rising consistently throughout the week software ADRs succumbed to profit booking on Friday. On the other hand after remaining on the sidelines throughout the week. ICICI Bank witnessed a spurt yesterday in its price (14%). The stock has been weak in the last couple of weeks due to off loading of its shares by a major strategic investor. The stock may have been buoyed by the asset reconstruction ordinance passed by the Indian parliament. ICICI Bank is expected to be the largest beneficiary due to this new law as it has a high level of NPAs in its books. This sudden spurt may also be the result of institutional buying in the counter.
Further profit booking in frontline software stocks cannot be ruled out in the coming week. However, buoyant sentiment on the US markets may overlook the high valuation that Indian software companies currently enjoy.
The trend at the global indices has been healthy on the whole. Indian bourses in particular have been showing healthy signs of recovery. Software stocks have mainly led the rally. This rally may not sustain in the coming week as the stocks are already at very high valuations. A fair bit of profit booking cannot be ruled out in the coming week. European indices may see erosion in values as the largest economy in the region i.e. the German economy is facing tough times.
More Views on News
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.
Aug 16, 2017
All across the country, the old gods become devils. New, gluten-free gods take their places...
Aug 16, 2017
And what it has in common with beating the stock market too.
Aug 16, 2017
Ensure your financial Independence, and pledge to start the journey towards financial freedom today!
Aug 14, 2017
Last week's correction is making a number of Super Investor stocks look a lot more attractive...
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 4, 2017
The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
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: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407