Markets Rebounds to Trade in Green

The Global Markets trade in a negative territory this morning. U.S. stocks fell, sending the Standard & Poor’s 500 Index lower for a fourth day, as Japan raised the severity rating of its nuclear crisis to the highest level, oil plunged and Alcoa Inc.’s sales missed estimates. European stocks fell the most in four weeks as Tokyo Electric Power Co. said its earthquake-hit nuclear power plant may release more radiation than Chernobyl and Alcoa Inc. posted sales that missed analysts’ estimates. This morning Asian stocks fell, with the regional benchmark index headed for its lowest since March 29, as oil and metal prices dropped, tempering gains by carmakers after Nomura Holdings Inc. said they were ‘oversold’. In commodities, Oil traded near a two-week low in New York because of concern demand may slow after the International Energy Agency said prices above $100 a barrel are starting to hurt the economy, and as U.S. stockpiles increased. Gold may rally from its slide to a one-week low as concern over Japan’s crippled nuclear plant, the conflict in Libya and European debt revive demand. Copper in London may decline for a third day, extending the biggest drop in a month, on concerns that economic growth may slow as more earthquakes rocked Japan and on speculation China may extend credit-tightening measures. The markets have rebounded into the positive territory on the back of fresh buying in select auto and capital goods stocks. The Sensex which tumbled to a low of 19102 has recovered almost 250 points and touched a high of 19,438. The index is now up 175 points at 19,438. The NSE Nifty has gained 52 points at 5,837. The BSE Capital Goods index has moved up over 1% to 13,742. The Auto index and Bankex too are up smartly. The market breadth is fairly positive - out of 2,053 stocks traded so far, 1,207 have advanced, and 777 have declined on the BSE.