Markets Trade on a Subdued Note Ahead of the RBI Policy Today

The Global Markets gives out mixed clues this morning. U.S. stocks rose, recovering from a late-day tumble, as growth in Chinese and American manufacturing and speculation the Federal Reserve will pump cash into the economy overshadowed a report that JPMorgan Chase & Co. was being probed for mortgage deals. European stocks climbed after manufacturing in China and the U.S. expanded more than forecast, boosting confidence in the global economy before this weeks Federal Reserve meeting. This morning most Asian stocks fell, paced by Japanese exporters, as the yen traded near a 15-year high before policy meetings this week by the U.S. Federal Reserve and Bank of Japan. In commodities, Oil rose for a second day to trade near a two-week high on speculation the Federal Reserve will take steps to stimulate the U.S. economy and on accelerating growth in China, the worlds largest energy consumer. Gold, trading little changed, may advance as weakness in the dollar increases the appeal of precious metals as alternative investments. Silver traded near a 30-year high. Copper, trading little changed in London, may decline as some investors sell following a recent rally. The Indian markets remain subdued on account of global weakness and expectations of a 25 basis points rate hike. Reserve Bank of India in its macroeconomic outlook hinted raising rates for the sixth time to anchor inflationary expectations as inflation continued to remain stubbornly high at around 8.6%, above the RBI's comfort level of 6 per cent. The main gainers this morning are the Consumer Durables, Capital Goods and PSU indices. Market breadth is positive with 1,361 advances against 1,223 declines. The Sensex trades in red at 20,340.09 declining 15.54 points or 0.08 percentage points. Nifty trades at 6114.40 declining by 3.15 points or 0.05 percentage points.