Markets Trade in Green Taking cues from its Global Peers

DSIJ Intelligence / 09 Mar 2011

 Morning Market Summary

The Global Markets trade in a mixed territory. U.S. stocks advanced, snapping a two-day decline for benchmark indexes, as crude oil retreated and Bank of America Corp. sparked a rally in financial shares after saying its home-loan business is in recovery mode. European stocks advanced as oil fell from a 29-month high, offsetting concern that the European Central Bank will raise interest rates several times this year. This morning, Asian stocks climbed for the first day this week after oil prices retreated and Japanese machinery orders rose more than expected in January. In commodities, Oil dropped for a second day as members of the Organization of Petroleum Exporting Countries considered talks about increasing production as fighting disrupts supplies from Libya. Gold may climb, approaching a record, as escalating turbulence in Libya worsened, spurring demand for the metal as a haven investment. Copper rebounded from the lowest price in almost two weeks as economic concerns eased following a drop in energy costs. Markets opened on a firm note led by firm global cues and easing oil prices. The Sensex was up 60 points, at 18,499 and the Nifty advanced 16 points, at 5537. Oil prices pulled back with Brent crude falling over 2% to $122.63/bbl after reports that OPEC would increase production to put on a lid on rising prices. BSE Realty and Banking shares were leading the sectoral pack, up 1.1% and 1% each. From realty space, Orbit Corporation was up 2.2%, DB Realty advanced 1.9% and Mahindra Lifespace was up 1.8%. Auto shares were also in the top gear, the index was up 0.7%. Auto Ancillary Apollo Tyres was the top gainer, up 1.6%, Bajaj Auto was also up 1.6% and Maruti Suzuki climbed 1.1%. Among the broader markets, midcap and smallcap indices were up 0.7% and 0.8% each. Market breadth was positive, 1137 stocks advanced for 326 stocks that declined.

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