Markets Take Breather to Trade on a Flat Note

The Global Markets trade in a mixed territory. Most U.S. stocks advanced, sending the Standard & Poor’s 500 Index higher for a second day, as optimism about takeovers outweighed a drop in technology shares following a report showing lower chip sales. Most European stocks rose, extending a three-week high for the Stoxx Europe 600 Index, as chemical makers advanced after Solvay SA agreed to buy Rhodia SA for 3.4 billion euros ($4.8 billion). This morning Asian stocks dropped, with the regional benchmark index retreating from a three-week high, after Tokyo Electric Power Co. began dumping radioactive water from its crippled nuclear plant and semiconductor stocks declined. In commodities, Oil dropped from the highest since September 2008 in New York after a report that the sons of Libyan leader Muammar Qaddafi are seeking his ouster and as analysts forecast an increase in U.S. crude inventories. Gold climbed for a second day as rising oil and grain prices fanned concerns that inflation is accelerating, supporting demand for the precious metal as an alternative investment. Silver reached a 31-year peak. Copper fell for the seventh time in eight sessions on concern that demand will weaken as central banks around the world take steps to cool inflation. Indian markets after opening marginally in the green, the Sensex slipped into the red with the benchmark index touching an intra-day low of 19,626. Currently, the Nifty and the Sensex are flat at 5,889 and 19,630 respectively. In the broader markets, the small cap index advanced 1% while the midcap index gained 0.5% outperforming the BSE benchmark index which is down 0.2% in the negative. On the BSE sectoral chart, IT and Auto indices are down 0.5% each followed by Bankex losing nearly 0.1%. On the other hand, Consumer Durables and Health Care gaining 1% and 0.4% are the top gainers while Oil & Gas and Realty are trading flat. Of the total 2369 stocks traded on the BSE, 1516 stocks have advanced while 788 have declined.