Markets Trade on a Flat Note

The Global Markets emanate mixed vibes this morning. U.S. stocks fell, driving the Standard & Poors 500 Index to the lowest level of the month, as Federal Reserve Chairman Ben S. Bernanke said he is not prepared to take immediate action to stimulate the economy. European stocks declined after Moody’s Investors Service said the U.S. may lose the top AAA credit rating it’s held since 1917 and Italian government bonds fell as borrowing costs rose at a debt auction. This morning Asian stocks fell, with the regional index set for its first weekly decline in four weeks, after oil and metal prices dropped after the U.S. Federal Reserve Chairman ruled out further bond purchases and the country was placed on Credit watch negative by Standard & Poor’s. In commodities, Oil rose in New York, erasing weekly losses, as investors bet that U.S. fuel consumption may climb amid signs of improving confidence and manufacturing growth in the world’s biggest crude consumer. Gold headed for a second weekly increase after rallying to a record yesterday on concern that the wrangling in the U.S. over the Federal debt ceiling and the sovereign-debt crisis in Europe will boost haven demand. The Indian markets opened on a higher note this morning with the Sensex touching a high of 19619. As the day progressed the markets drifted lower, the Sensex trades at a 18595 down by 23 points and Nifty trades at 5581 down by 19 points. The main draggers this morning are the Auto and Metal indices. However, the market breadth is positive with 1214 advances as against 908 declines in BSE.