Markets Witness Opening on a Strong Note

The Global Markets emanate mixed vibes this morning. U.S. stocks fell, sending the Standard & Poor’s 500 Index down for a second day, as concern grew that Europe’s debt crisis will hurt banks and an increase in jobless claims added to signs the economy is slowing. European stocks sank, falling to their lowest level since March, as banks led a selloff after Federal Reserve Chairman Ben S. Bernanke cut his growth forecast for the world’s largest economy. This morning Asian stocks rose, setting the regions key index on course for its first weekly advance in eight, after oil prices tumbled, buoying economic growth hopes, and concern eased Europe’s debt crisis will hurt bank earnings. In commodities, Oil rose in New York, reversing yesterday’s plunge, on concerns that stockpile releases by consuming nations may limit the ability to respond to supply disruptions in future. Gold may rebound from the biggest decline in seven weeks as the prospect of sustained low interest rates in the U.S. and Europe’s lingering sovereign debt crisis boost demand for the metal as an alternative investment. Copper fell the most in three weeks as U.S. jobless claims rose and European Central Bank President Jean-Claude Trichet said that the debt crisis threatens banks, damping prospects for metal demand. The markets started the last trading session of the week on a strong note with the Sensex up 123 points at 17,743 while the Nifty gained 31 points to begin the day at 5351. The broader markets too had a fair opening. The small cap and the midcap indices are up 0.6% each underperforming the Sensex which gained 0.7% in the opening trades. Currently the BSE benchmark index has gained 239 points at 17,962 and the Nifty added 69 points at 5,389. Market heavyweight, Reliance Industries is the only Sensex scrip which started in the negative, down 1% at Rs 861. The market breadth is positive. Of the total 1455 stocks traded on the BSE, 995 stocks have advanced while 407 declined.