Markets Trade in Red

The Global Markets trade in a negative territory this morning. U.S. stocks fell, driving the Standard & Poor’s 500 Index to its biggest drop since November, after Goldman Sachs Group Inc. failed to beat profit estimates and housing starts slid more than forecast. European stocks slid the most since November after a report said the U.S. building industry started work on fewer homes than projected and Goldman Sachs Group Inc. posted earnings that failed to exceed analysts’ estimates. This morning Asian stocks fell with the regional benchmark index falling the most in two weeks, as Chinese economic reports prompted speculation the country will do more to fight inflation and U.S. earnings disappointed. In commodities, Oil declined for a third day in New York after builders began work on fewer U.S. homes than projected in December, signaling the economic recovery may be slowing in the biggest crude-consuming nation. Gold, trading little changed in Asia, may drop for the first day in four as declines in equities boosted demand for the dollar, hurting the metals appeal as an alternative investment. Copper demand will outstrip supply for the next two years as the economy recovers, China sustains consumption and mine output drops, Japans top producer said. Indian markets opened lower on back of weak cues from the global markets. The Sensex fell 78 points, at 18,900 and the Nifty dropped 24 points, 5667. All the sectoral indices were trading in the red. Metal shares lost sheen, the index was down 1.1 per cent. Sterlite Industries fell 2.03 per cent, followed by Steel Authority of India, down 1.7 per cent and Sesa Goa dipped 1.5 per cent. BSE oil & gas index was also one of the top sectoral losers, down 0.9 per cent. Gail India dipped 2.2 per cent, Indian Oil Corporation declined 1.2 per cent and Petronet LNG was off 1.1 per cent.