Markets Trade on a Lacklustre Note

The Global Markets emanate mixed vibes this morning. U.S. stocks fell last week, including the biggest one-day drop in a month, amid concern the debt crisis in Europe is spreading and American lawmakers are putting the nation’s top credit rating in jeopardy. European stocks posted the biggest weekly drop since March as concern mounted that the sovereign- debt crisis will spread to Italy and Spain and as rating companies said they may cut the U.S.’s top credit rating. This morning Asian stocks fell for a third day after U.S. President Barrack Obama said the government is running out of time in negotiating an agreement to cut the fiscal deficit, hurting the outlook for Asian exporters. This morning Oil traded near a two-day high in New York as investors bet that fuel demand may increase amid signs of an improving U.S. economy and speculation Europe will overcome its debt crisis. Gold surged to a record in the best run of gains in more than three decades as U.S. politicians failed to reach agreement on raising the debt ceiling and Europe’s sovereign crisis lingered, boosting haven demand. Copper may rally to a record $12,000 a metric ton in the first quarter as stronger than-expected demand from China, the largest user, and tumbling inventories spur imports. Markets posted marginal losses in opening trades following subdued global cues as investor sentiment remained cautious due to debt concerns in Europe and US. The Nifty index was up down 4 points, at 5,577 and the Sensex was up by 7 points, at 18,569. Foreign Institutional Investors bought shares worth a net Rs 73.03 crore and Domestic institutional investors (DIIs) sold shares worth Rs 39.14 crore as per provisional data from the stock exchanges. From the broader markets, the midcap and the small cap indices were off 0.3% each. Top gainers on the Sensex were Hindalco Industries, up 2%, DLF advanced 1.4% and Tata Power was up 0.8%. Prominent losers were Cipla, down 2%, Mahindra & Mahindra declined 0.5% and ICICI Bank was off 0.5%. In the broader market 1046 stocks advanced for 425 stocks which declined.