Markets Trade on a Flat Note

The Global Markets trade in a mixed territory this morning. U.S. stocks fell, dragging the Dow Jones Industrial Average down from an almost three-year high, as another earthquake shook Japan and a dispute over the federal budget threatened to shut down the American government. European stocks fell for the first time in five days after a 7.1-magnitude earthquake struck off the coast of Japan and as the European Central Bank raised interest rates for the first time in almost three years. This morning, Asian stocks gained, reversing earlier declines, on growing speculation damage from yesterday’s 7.1 magnitude aftershock was limited. In commodities, Oil headed for a third week of gains in New York after climbing above $110 a barrel as a fire burned at Libya’s Sarir field, heightening concern that the conflict in North Africa and the Middle East may spread. Gold headed for the biggest weekly advance in more than a month as concern that inflation may accelerate financial turmoil in Europe and fighting in Libya bolstered haven demand. Silver traded near a 31-year peak. Copper in London headed for a weekly advance, on growing optimism that supplies will fail to keep up with demand. Markets turned negative after edging higher due to selling pressure in realty and auto shares. Brent crude topped $123/bbl, highest in 30 months led by escalating tensions in west Asia also weighed. After touching a high of 5923, the S&P CNX Nifty was down 30 points, at 5855 and Sensex dipped 84 points, at 19,504. After rallying around 10%, markets have been moving sideways for the past three sessions. Broader markets were also trading in the red, midcap and small cap indices were down 0.4% and 0.3% each. Top losers on the Sensex were Wipro, down 2.1%, JP Associates declined 2% and Tata Motors was off 1.9%.  Only 6 components on the Sensex were trading in the green. Bharti Airtel was up 2%, ITC fell 0.5% and Hindustan Unilever declined 0.3%. Market breadth was negative 923 stocks advanced for 1414 stocks which declined.