Dec 13, 2003|
Global markets: Dow conquers 10,000
It was rotation time on the US bourses this week as investors decided to shift their money from tech stocks to the blue chips, thus resulting in the Dow gaining 2% over the past week's closing levels. Tech laden Nasdaq also ended the week with near 1% gains. The week was also witness to the Dow moving past the 10,000 mark.
With little uncertainty surrounding the Fed's announcement, investors remained unnerved and bought into blue chip stocks, which sent the indices higher on Monday. As expected the Fed did not tinker with the interest rates but let out a subtle hint that it would do so in the future and this resulted in a sell off on Tuesday. The sell off also dashed the hopes of Dow to close above the psychological level of 10,000.
With no economic reports to influence movements, markets remained volatile on Wednesday and a weak dollar further added to the volatility. Had it not been for the recovery at the fag end of the day, the markets would have suffered even greater declines. Broad based buying helped in part by a strong sales report brought the bulls back in action on Thursday and resulted in Dow closing above the coveted 10,000 mark, the first time in 18 months. The buying interest sustained itself on Friday, resulting in the Dow carving out a fresh 18 month high and thus ending the week in style.
As far as the indices across the world are concerned, the BSE emerged as the highest gainer, registering gains of near 4%. The index seems to be gaining on the back of expectations of improved third quarter results from the Indian corporate sector. Among other Asian indices, while the Nikkei gained nearly 1% on Friday on improved exports performance, the gains were not enough to mask the declines earlier in the week and as a result the index was down 2% for the week. The Hang Seng however, registered gains of 2%. The strength in the US markets rubbed off on its European counterparts and as a result both the FTSE and the Dax closed the week with gains.
|(Price in US$)
On the back of strong rally both in the US as well as Indian stock markets, Indian ADRs ended the week with notable gains. Tech major Satyam Computers emerged as the highest gainer, gaining 23% over the week. The company has done reasonably well in recent times with a number of outsourcing contracts coming its way. Banking ADRs, HDFC Bank and ICICI Bank also performed well, very much in line with their movements on the Indian bourses, mainly on account of improved private sector banking scenario in the country. Among the losers, while dotcom Satyam Infoway lost 4% over the week, international long-distance telecommunication major VSNL shed nearly 7%.
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