Markets Witness Selling Pressure to Trade in Red

The Global Markets trade in a negative territory. U.S. stocks fell across board last Friday amid concerns about the potential impact of oil's sharp rise above $100/ bbl on the recovery and increasing worries after the Fed pulls pack from measures in June. European stocks fell after U.S. wages failed to keep pace with a surge in energy costs and oil climbed as investors speculated that pro-democracy protests in North Africa will spread to the Arabian Peninsula. This morning Asian stocks dropped, with the benchmark regional index declining for the first time in three days, after the conflict in Libya escalated and oil prices surged, threatening to derail the global economic recovery. In commodities, Oil surged to the highest in 29 months in New York as unrest in Libya renewed concern supply disruptions may spread while signs of U.S. economic recovery stoked speculation fuel demand will rise. Gold climbed, approaching a record, as violence intensified in the Middle East and oil continued to gain, driving demand for precious metals as a hedge against uncertainties and inflation. Silver reached a 31-year peak. Copper declined for a second day on concern that escalating conflict in Libya will further boost energy prices, weighing on growth and eroding metals demand. Markets extended losses on selling pressure in select sectors as political uncertainty continued to dampen investor sentiments. The Sensex opened at 18,361. Thereafter it declined to a low of 18,141 declining more than 345 points. Nifty was down 101 points at 5436. Crude oil prices continued to rise following doubts that the Libyan unrest could spread to other Middle Eastern countries. All the sectoral indices were in red. BSE realty and auto indices dropped 2.5% each to 2,026 and 8,701, respectively. BSE market breadth was fairly negative. Out of 2301 stocks traded, 1,588 declines as against 637 advanced.