NEW YORK ( TheStreet) -- During the past week, global indices recovered their partial losses after a raise in debt ceiling gave hopes to the economic situation. Except Brazilâ¿¿s Bovespa, which edged up 1% at the end of the past week, all the other markets ended in red. Indiaâ¿¿s Nifty dropped 1.1% at end past week while Chinaâ¿¿s benchmark Shanghai Composite Index was down 1.2% at close last week.
The S&P 500 and the Dow Jones narrowed down their losses as compared to the previous week with a fall of 2.3% and 2.1% respectively. After facing a significant drop in markets, the U.S. economy fears were eased after the unexpected drop in jobless claims provided cushion. U.S. jobless claims touched 395,000, its lowest level since April, relaxing investorsâ¿¿ panic sentiment.
For the week ended Aug. 10, according to data compiled by international fund tracking firm EPFR, funds investing in the developing nation stocks recorded $7.7 billion in withdrawals which took the total outflows for 2011 to $14 billion. Also, the report revealed that the emerging-market equity funds recorded the third largest weekly outflows due to the S&P downgrade of U.S. credit rating and spread in Europeâ¿¿s debt crisis.
MSCI Emerging Markets Index slipped 11% for the five days ending Aug. 10 with almost $7 trillion erased from global equity values since July 26. MSCI developing nation index inched up 0.6% trimming its loss for the year to 13%.With some of the investment banks upgrading India to market weight, indicating strong basic fundamentals and positive economic recovery, Indiaâ¿¿s Nifty index eroded its losses partially with four gainers. Most of the IT stocks declined after the U.S. downgrade as it may lead to a slowdown in the decision-making on technology spending by clients in the worldâ¿¿s largest outsourcing market. iGATE (IGTE - Get Report) emerged the top decliner, shedding 15.4% at close last week. Meanwhile, Cognizant Technology Solutions (CTSH - Get Report) erased 8.4%. Another IT stock Patni Computer Systems (PTI) lost 7.4%. On the Shanghai Index, pharma stocks, China Biotics (CHBT) and China Sky One Medical (CSKI) emerged as the top losersâ¿¿ with declines of 20.5% and 19.6% at close last week. Sales of automobiles in China slowed down in July with growth falling 9% from June 2011 to 1.01 million units as the government policies to boost car purchases expired after the recent crisis. Total sales including commercial vehicles dipped 11.1% from June. Following, auto parts and equipment makers like Sorl Auto Parts (SORL - Get Report) and China Automotive Systems (CAAS - Get Report) dived 15.5% and 12.9% lower. The ratio of advancersâ¿¿ to declinersâ¿¿ at end past week stood at 7:18 for the Bovespa Index. Communication services and Utilities sector stocks were part of the major losers. Utilities stocks like CPFL Energia (CPFL), Centrais Eletricas Brasileiras (EBR) and Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP (SBS) were among major losers with a fall of 9.8%, 7.2% and 6.6% respectively. Communication services stocks like Telecomunicacoes de Sao Paulo (VIV), Brasil Telecom (BTM) and TIM Participacoes (TSU) shed 5%, 4.8% and 4.8% respectively. Below, the stocks are listed based on last weekâ¿¿s gains, highest to least.