Markets Trade in Red this Morning

The Global Markets trade in a negative territory this morning. U.S. stocks erased most of their losses, preventing the biggest two-day drop for the Standard & Poor’s 500 Index since November, as Morgan Stanley led gains by financial companies and homebuilders rallied, offsetting concern that China will raise interest rates and hamper global growth. European stocks fell for a second day as accelerating Chinese economic growth fueled speculation the government will lift interest rates further to calm inflation, overshadowing a drop in U.S. jobless-benefit claims. This morning, Asian stocks fell, with the regional benchmark erasing its gains for the year, led by material producers, amid concern that China will take more steps to restrain its economy. In commodities, Oil fell, heading for its third weekly decline in a month, after China’s inflation fanned speculation the world’s biggest energy consumer will take steps to cool its economy and U.S. crude supplies unexpectedly rose. Spot gold, trading near a two-month low, headed for a third weekly drop amid speculation China will raise interest rates, curbing demand for commodities, and as exchange-traded product holdings fell to the lowest since August. Copper rebounded in London, paring its worst weekly drop since August, as the decline yesterday lured investors who expect a global shortage this year. Lead and zinc advanced. Markets opened lower on back of weak cues from the global markets and losses in IT shares after Wipro reported third quarter results. Sensex was down 45 points, at 19,000 and the Nifty dropped 7 points, at 5,703. Oil & Gas shares were on the buzzer this morning ahead of the Reliance Industries results after market hours today. Besides RIL, Oil Marketing Companies HPCL and BPCL climbed 1 per cent and 0.3 per cent each. Gail India and Cairn India advanced 0.3 per cent each. Broader markets outperformed the Sensex, the midcap and small cap indices surged 0.4 per cent each. Market breadth was negative 498 stocks declined for 1054 shares which advanced.