Markets Trade in Green; Crossed 19K Momentarily

The Global Markets emanate positive vibes this morning. U.S. stocks rallied, giving the Standard & Poor’s 500 Index its biggest four day gain since September, amid increased optimism Greece will avoid default and after American business activity improved. European stocks rose, posting the biggest two-day gain for the Stoxx Europe 600 Index in almost seven months, as Greek lawmakers approved a bill authorizing austerity measures, qualifying the country for further aid. This morning Asian stocks rose, driving the regional benchmark index to its longest advance since February, on optimism Greece will avoid default and after U.S. manufacturing unexpectedly expanded at a faster pace in June, lessening risk for bank earnings and exports. In commodities, Oil declined, trimming the biggest weekly gain in almost three months, as signs of slowing manufacturing growth in China and the U.S., the world’s biggest energy users, stoked speculation fuel demand may falter. Copper dropped for the first time in four days, paring a weekly increase, as some investors sold the metal to lock in gains after the metal climbed to a two-month high yesterday. Zinc and lead also declined. Gold may drop for a second day after the Standard & Poor’s 500 Index had the biggest four-day gain since September and the risk that Greece will default eased, curbing demand for the metal as an alternative investment. Markets had a gap up opening with the Sensex starting at 18,975 and touched a high of 19,031, up 176 points and the Nifty opened with a 44 points gain at 5690. The broader too had a strong opening with the small cap index starting with a 0.6% gain and the midcap index gained nearly 0.5%. However, moving ahead the markets succumbed to profit booking and the BSE benchmark index is currently up 69 points at 18,915 and the Nifty id at 5,662 up 15 points. All the sectoral indices started in the positive barring the Consumer Durables index. Realty gaining 1.4% is the top gainer in the opening trades followed by Metal, PSU and IT indices adding in the range of 0.6-0.8%. The market breadth is positive. 1344 stocks advanced while 367 declined on the BSE.