Markets Trade on a Positive Note

The Global Markets emanate positive vibes this morning. U.S. stocks posted the biggest weekly rally in two years, with the Dow Jones Industrial Average rising 648 points, after Greece took action to avoid a default, Nike Inc.’s earnings topped analyst estimates and U.S. manufacturing growth rebounded. European stocks surged this past week by the most in a year, led by a rally in banks and mining companies after Greek lawmakers passed a five-year austerity package, qualifying the country for further aid. This morning Asian stocks advanced, with the regional benchmark index heading for its longest winning streak in six months, as exporters climbed after U.S. manufacturing unexpectedly accelerated in June. In commodities, Oil rose in New York, extending last weeks 4.2 percent rally, after Europe authorized a loan payout for Greece, easing speculation the country’s debt crisis will derail the regions economic recovery. Gold advanced, rebounding from a six- week low, on speculation the euro will strengthen further against the dollar amid expectations that the European Central Bank will raise interest rates this week. Copper rose, capping the biggest weekly gain since April, on speculation that China will refrain from raising interest rates after manufacturing growth slowed. Markets opened higher following firm global cues and strong data from the US and worries over Greece took a back seat. The S&P CNX Nifty gained 26 points, at 5,654 and the benchmark Sensex advanced 65 points, at 18,828. BSE Realty index was the top gainer, up 2.5%. Sobha Developers added 5%, DLF gained 4.1% and Anant Raj Industries was up 3%. BSE Oil & Gas index was up 1%. Petronet LNG gained 1.5%, Reliance Industries rebounded and was up 1.4% and Gail India gained 1.2%. From the broader markets, midcap index gained 1% and small cap index added 0.9%. Market breadth was positive, 1361 stocks advanced for 455 stocks which declined.