Markets Trade on a Flat Note

The Global Markets trade in a negative territory this morning. U.S. stocks retreated, extending a two-week slump for the Standard & Poor’s 500 Index, as Greece sought additional bailout funds and a report showed that manufacturing growth in the New York region cooled. Most European stocks fell, dragging the Stoxx Europe 600 Index lower for a third day, as officials met in Brussels to discuss increasing Greece’s bailout. This morning Asian stocks fell, driving a regional benchmark index lower for a fourth straight day, as Greece sought more bailout funds and slower-than-expected manufacturing growth in New York fueled concern over a global economic recovery. In commodities, Crude oil fell and gasoline slipped to a two-month low after the opening of spillways reduced concern that the Mississippi River will flood refineries. Gold may decline for a third day after billionaire investor George Soros sold most of his exchange-traded bullion holdings and as leaders in Europe worked to ease debt crises in Greece and Portugal. Copper dropped for the first time in four days as concerns over a potential slowdown in the Chinese economy and European debt crisis dimmed the demand outlook. Indian markets opened flat and continued to trade on a subdued note due weak global cues and lack of any strong directional cues. The Nifty was down 13 points, at 5,487 and the Sensex dipped 31 points, at 18,316. Oil & Gas shares were leading the losses on concerns that upstream oil companies may have to bear the subsidy burden of Rs 30,000 crore according to television reports as government increased upstream subsidy sharing to 38.5% of the total burden (Rs 75,000 crore) for FY11. The BSE oil & gas index was down 2.2% with ONGC falling over 5% as the new subsidy sharing formula may affect the profitability and plans of follow on public offer.