Markets Trade Below 21K on Profit Booking

The Global Markets gives out positive clues this morning. U.S. stocks rallied for a fifth week, sending the Dow Jones Industrial Average to its highest level since before Lehman Brothers Holdings Inc.’s 2008 bankruptcy, as the Federal Reserve announced a $600 billion bond-purchase plan to boost growth and employment increased more than forecast. European stocks rose to a six-month high this week as the Federal Reserve announced another round of bond purchases to boost the economy, offsetting renewed concern that some European countries won’t be able to repay their debts. This morning Asian stocks rose, driving the benchmark index to its longest winning streak since June, after a report last week showed the U.S. added more jobs than forecast, boosting confidence in the world’s largest economy. In commodities, Oil rose for a sixth day, the longest rally since April, after U.S. payrolls increased more than forecast in October, signaling a recovery in fuel demand in the world’s biggest crude-consuming nation. Copper erased gains in early Asian trading, may decline for the first time in three days as the dollars strength curbed demand for alternative investments. In a year when demand for precious metals is only getting hotter, platinum is having its worst relative performance since 2006. The Indian markets slipped in early trades due to profit booking and trades below the psychological level of 21000. The main draggers are the Banking, PSU and Realty indices. Market breadth is positive with 1,476 advances against 1,048 declines. The Sensex trades in red at 20,896.03 declining 108.93 points or 0.52 percentage points. Nifty trades at 6281 declining by 31.45 points or 0.50 percentage points.