Dec 20, 2003|
Global markets: Wow, its Dow…
The rotational trend, which is making investors shift their money from the tech stocks into the sectors that have lagged the broad market rally, continued unabated on the US bourses resulting into the Dow gaining more than its tech heavy counterpart, the NASDAQ. As such, for the week ended December 19 2003, while the Dow gained a little over 2%, the NASDAQ ended almost flat. These gains on the Dow were enough to make the index carve out a new 19 month high.
The week started off armed with the news of Iraqi leader Saddam Hussein's arrest. But it failed to positively impact the US markets as both the benchmark indices edged lower on Monday. A spate of bullish economic reports brought the bulls back into action on Tuesday and as a result, both the NASDAQ as well as the Dow ended the day with gains. Mixed start to the results season and continued weakness in the US dollar resulted in lackluster trading on Wednesday and the markets ended little changed. Buying activity resurfaced again on Thursday owing to improved showing from the labor markets and the manufacturing index. The rumour of an impending attack on New York City scared the investors on Friday and resulted in an intra day decline. However, stocks recovered towards the close and capped off a week that saw the Dow gaining by a greater margin as compared to the tech laden NASDAQ.
With the exception of the Hong Kong benchmark index, Hang Seng, other major indices across the world ended the week with gains. Once again, the star turned out to be the BSE, which gained a little over 4% over the week. With most of the macro economic indicators already pointing towards higher growth, the incumbent party's landmark win in the state elections and the anticipation of good third quarter results from India Inc are further adding to the positive mood on the Indian bourses. Dow gains on the US markets also helped the Nikkei and the European indices to register gains, with the British benchmark index, FTSE, carving out a new 16 month high.
Indian ADRs, predominantly the tech ones, got caught up in the tech selling frenzy on the US bourses and as a result barring Satyam, which gained marginally, all of them ended the week with declines. Dotcom ADR, Satyam Infoway was the highest loser with a decline of 4%. Infosys, which acquired an Australian company, Expert Information Systems, also suffered decline of 3%. While pharma major Dr. Reddy's also closed in the negative, mixed trends were observed in telecom and banking ADRs. Telecom major, MTNL, on the back of good growth numbers, along with ICICI Bank, registered the maximum gains of 4% among Indian ADRs. These two along with Satyam were the only ones that ended the week with gains.
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