Markets Trade on a Negative Note

The Global Markets emanate mixed vibes this morning. U.S. stocks rose for the first time in seven weeks, preventing the longest losing streaks for the Standard & Poor’s 500 Index and Dow Jones Industrial Average since 2001, as concern about the American economy ebbed even as the Greek debt crisis deepened. European stocks fell, with the benchmark Stoxx Europe 600 Index declining for a seventh week, as concern mounted that the European Union may delay a second rescue plan for Greece. This morning Asian stocks rose, snapping a seven- week decline, after Citigroup Inc. raised its recommendation on Japanese carmakers and Australian banks gained on speculation they will avoid losses from Europe’s credit crisis. In commodities, Oil declined for a second day in New York on speculation a weakening global economy and Greece’s debt crisis will lead to lower fuel demand. Gold may increase after European governments failed to agree on a Greek rescue package and signs the U.S. economy may be slowing boosted demand for the precious metal as a safe-haven investment. Copper in London dropped for the third time in four days on concern Greece’s debt crisis may worsen after euro-area finance ministers failed to reach an agreement on the disbursement of aid to the country. The markets after a start took a sharp dip in mid-morning trades on panic selling on reports that tax treaty talks between India and Mauritius are likely to resume soon. The Sensex tumbled to a low of 17,314, and is now down nearly 300 points at 17,577. Market breadth is extremely negative. Only 362 stocks are advancing against 1,920 declining stocks. Broader markets have crashed. CNX Mid cap is down 214 points and BSE Small Cap is lower by over 250 points. Stocks with investment in Mauritius have collapsed on reports that tax treaty talks between India and Mauritius are likely to resume soon. Over 40% FDI in India comes from Mauritius.