Indian Weekly Market Update August 21 2009
Markets across the US and Europe, following a marginal decline the previous week, resumed their uptrend as positive news flow kept investors bullish for the week ended August 21, 2009. Home purchases in the US rose 7.2 percent year-on-year to 5.24 million in July, the highest rise since August 2007. Furthermore, the Conference Board’s coincident index remained unchanged in July after falling in 17 of the 19 months since December 2007. Positive news came in from the European continent as well—the services index in Germany and the manufacturing index in France rose unexpectedly. The German Services Index moved up to 54.1 in August from 48.1 in July, while France’s manufacturing gauge climbed to 50.2 from 48.1 during the same period. These developments together resulted in a rally in major equity markets with the Dow Jones Industrial Average (DJIA) and FTSE 100 rising 1.98 percent and 2.90 percent, respectively, during the week ended August 21, 2009.
Asian markets reversed their positive trend in this week. All major indices closed in the red for the week ended August 21, 2009. Taiex, Taiwan’s benchmark index (down 5.87 percent), was the worst performer due to concerns over economic ties with China and the negative macroeconomic news. South Korea’s Kospi index declined by a marginal 0.66 percent and was the best performing index among its Asian peers during the week ended August 21, 2009. The BSE Sensex fell 1.11 percent due to concerns over the weak monsoon and negative regional cues.
The rupee depreciated 0.74 percent during the week as foreign institutional investors (FII) remained cautious and turned net sellers. Crude oil prices increased 9.5 percent to US$73.89 per barrel after declining 4.8 percent the previous week. Prices rose to the highest level in this year as the US and European stocks increased in anticipation of a recovery in the global economy.
______________________________________________________________________________
To read complete commentary, please download the file.
______________________________________________________________________________
ARANCA is a leading provider of customized end-to-end investment research, business and IP research and IRC 409A valuation services to global clients. To know more about us and our services, click here
