Banking and IT Stocks Drags the Market In Red

The Global Markets trade in a mixed territory. U.S. stocks erased gains, preventing a third straight advance in the Standard & Poor’s 500 Index, as growing concern that the Federal Reserve will begin removing stimulus measures offset optimism about takeover deals. European stocks climbed for a third day, led by technology companies, after Texas Instruments Inc. agreed to buy National Semiconductor Corp., fueling optimism that company spending will push shares higher. This morning Asian stocks declined, sending the regional benchmark index lower for a second day, amid growing concern the Federal Reserve will withdraw stimulus measures and after China raised interest rates. In commodities, Oil declined for a second day in New York amid signs that the pace of fuel demand recovery may falter in the U.S. and China, the world’s biggest energy users. Gold climbed to a record for a second day as the sovereign-debt crisis in Europe deepened after Moody’s Investors Service cut Portugal’s credit rating and higher grain and oil prices worsened the inflation outlook. Copper rose for the first time in three sessions after reports that heavy rains hampered production in Peru and Chile, the world’s largest supplier. After an opening in the green, the Sensex has slipped in the red with the BSE benchmark index down 83 points at 19,603 and the Nifty losing 28 points at 5,882. The broader markets too lost its sheen but continue to trade in the positive. The small cap index is up 0.3% while the midcap index is trading with a 0.1% gain. On the BSE sectoral chart, PSU, Capital Goods, FMCG, IT and Bankex have slipped into the negative shedding between 0.1% - 0.6%. On the brighter side, Consumer Durables and Realty continue to lead the gains with 0.6% each. Owing to the broader market, the market breadth is positive. Of the total 2559 stocks traded on the BSE, 1422 stocks have advanced while 1051 have declined.