Markets Trade in Green

The Global Markets emanate negative vibes this morning. Sovereign debt concerns and the prospects for slower growth in Europe and Asia took their toll on global markets on Monday, with stocks on Wall Street spiraling more than 1 percent lower on all three major indexes. European stocks dropped to a one- month low after Spain’s ruling party suffered its worst election defeat in 30 years and Standard & Poor’s warned it may downgrade Italy’s debt. Asian stocks swung between gains and losses as exporters fell after reports signaled economic growth is slowing in the U.S. and Europe, while raw materials producers advanced. In commodities, Crude oil declined as Europe’s sovereign debt crisis deepened, bolstering concern that economic growth will slow and fuel consumption decline. Gold futures rose to the highest in more than a week as the European sovereign debt crisis spurred demand for the precious metal as a haven. Copper fell the most in more than a week in New York as manufacturing slowed in China, the world’s biggest consumer of industrial metals. Markets bounced back in the morning session and held on to gains buoyed by capital goods shares. The S&P CNX Nifty was up 22 points, at 5,407 and the benchmark Sensex advanced 78 points, at 18,070. BSE Capital Goods continued to lead the gains on bargain buying as it was the top sectoral loser yesterday. Crompton Greaves advanced 3%, BHEL surged 1.9% and Suzlon was up 1.8%. Market breadth was positive, 829 stocks advanced for 630 declining shares.