Dec 16, 2000|
NASDAQ jitters hit markets
After a long period of healthy buying, the markets finally lost steam. Both operator unwinding on the last day and institutional selling caused the weakness on the markets. The sentiment in the markets was also affected by a sharp retreat on the NASDAQ and major Asian markets.
The rally in the markets which started early during the week with an across the board buying interest soon fizzled out. In the last two days the markets witnessed all round selling pressure. The profit booking on the markets seem to be more of a technical correction as the markets gained smartly early during the week. While during the first three days, the markets gained an impressive 136 (3%) points, in the last two days it gave up the gains (lost 148 points).
The fall in the markets was largely led by a sell off on the technology and pharma stocks. However, the surprise of the week was continued buying frenzy in select old economy and FMCG stocks. Reflecting the subdued trend, even FIIs and mutual funds opted to exit at higher levels. Institutional selling was the major contributor to the swing on the bourses. Although, FIIs and mutual funds were net buyers to the tune of Rs 2.5 bn and Rs 3.5 bn respectively for the week, they actually tuned net sellers on Thursday. FIIs sold securities worth Rs 0.8 bn and domestic funds were net sellers for Rs 0.5 bn.
Going forward, the trends in the markets largely depend on the impending December quarter results and positive new on the front of economy. The economy has already started showing positive results as can be reflected from the 6.6% growth in the Index of Industrial Production (IIP) in October 2000, the highest in the current year. However, this is lower compared to 8.7 % growth witnessed in the corresponding period of the last year. Even the country’s foreign exchange reserves have crossed the US$ 39 bn mark, an all time high. The foreign exchange reserves increased by US$ 0.7 bn to US$ 39 billion in December 2000.
Although the markets are following the NASDAQ sharply, the fall in the BSE Sensex (0.3%) was much less than the crash on the tech heavy NASDAQ (down by 9.1%). This indicates that there is some buying interest at lower levels, confirming the firm undertone of the markets.
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 19, 2017
Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.
Aug 18, 2017
Buying the index now will hardly help make money in stocks even in ten years.
Aug 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Aug 17, 2017
PersonalFN simplifies the mutual fund account statement for you.
More Views on News
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'
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 10, 2017
Bitcoin hits an all-time high, is there more upside left?
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