Markets Trade on a Positive Note

The Global Markets emanate mixed vibes this morning. U.S. stocks rose, posting their sixth advance in seven days, as gains in transportation and consumer- staple companies overshadowed a slowdown in service-industry growth and China’s interest-rate increase. European stocks declined, halting a seven-day rally, as China raised interest rates and Moody’s Investors Service cut Portugal’s credit rating to junk. This morning Asian stocks, trading near a two- month high, swung between gains and losses as Chinese banks rose after the country raised interest rates, boosting lenders’ margins and tempering concerns tightening measures will slow global economic growth. In commodities, Oil rose from a two-day low in New York after an industry-funded report showed crude stockpiles declined for a fifth week in the U.S., signaling fuel demand may be climbing in the world’s biggest consumer of the commodity. Copper fell from a 10-week high after China, the world’s leading metal consumer, raised interest rates for the third time this year to curb inflation, spurring concern that demand for raw materials will ebb. Gold may gain for a third day after China raised interest rates, boosting concern that global economic growth will slow, and as Europes debt problems increase demand for the metal as an alternative investment. The markets opened higher with the Sensex gaining 114 points at 18,840 and the Nifty is up 27 points at 5,652. The broader markets consisting of the small cap and the midcap indices too opened in line with the BSE benchmark index gaining 0.3% each. However, there was a small blip moving ahead but quickly rebounded. The Sensex is currently up 115 points at 18,842 and the Nifty is up 32 points at 5,657. Among the sectoral indices, Consumer Durables and FMCG indices are leading the gains up 1% each followed by realty. On the other hand, Bankex has started in the negative, down 0.3%. The top gainers among the Sensex stocks in the opening trades are Bharti Airtel, Jindal Steel, Reliance Infrastructure, Reliance Industries and ITC up 1% each. Sterlite, ICICI Bank down 1% each are the top losers followed by Maruti Suzuki, HDFC Bank and Hindalco losing 0.3% each. The market breadth is very positive. Of the total 1555 stocks traded on the BSE, 1033 stocks have advanced while 453 have declined.