Markets Trade in Green Ahead of the Credit Policy

The Global Markets trade in a positive territory this morning. U.S. stocks advanced, sending the Dow Jones Industrial Average to the highest level since June 2008, as acquisitions, share-buyback plans and dividend prospects bolstered investors’ optimism. European stocks rose as optimism that economic reports later this week will show faster growth in the U.S. economy offset declines in car makers and earnings that missed estimates from Royal Philips Electronics NV. This morning Asian stocks rose, driving the regional benchmark index higher for the second day as U.S. takeovers, share buybacks and dividend prospects drove the Dow Jones Industrial Average to its highest close since June 2008. In commodities, Crude oil for March delivery fell for a sixth day in New York, matching the longest losing streak since July, after Saudi Arabian Oil Minister Ali al-Naimi signaled OPEC may bolster production to meet rising fuel demand. Gold declined to a two-month low as stocks rallied, eroding the metal’s appeal as an alternative asset, and holdings in exchange-traded products slumped by the most since October. Silver, platinum and palladium also fell. Copper in London dropped for the first time in three days on speculation that further measures to curb rising asset prices in China may reduce demand in the world’s largest user. Zinc, lead and nickel also declined. Markets notched marginal gains in opening trades on back of strong global cues. The Sensex was up 99 points, at 19250 and the Nifty gained 30 points, at 5773. The credit policy later today will set the sentiment of the market. The Reserve Bank of India in its macro-economic review on Monday said "while downside risks to growth have receded, upside risks to inflation have increased. Among sectors rate sensitive banking, realty and auto shares will remain in focus today on account credit policy announcement. BSE Banking index was a laggard in opening trades, Punjab National Bank was off 0.7 Per cent, State Bank of India fell 0.3 Per cent and Union Bank also declined 0.3 Per cent.