Markets Trade on a Flat Note

The Global Markets emanate negative vibes this morning. U.S. stocks fell, pushing the Standard & Poor’s 500 Index to its worst seven-day period in more than a month, amid concern lawmakers will fail to reach a deal on the nation’s debt limit two weeks before a deadline. European stocks sank to a seven- month low, extending the drop from this year’s high to almost 10 percent, after results from bank stress tests failed to allay concern that the region’s sovereign debt crisis is spreading. Asian stocks fell, with the regional benchmark index declining for a fourth day, amid concern U.S. lawmakers will fail to reach a deal on the country’s debt limit and Europe’s worsening crisis will slow the global economic recovery. In commodities, Oil climbed in New York as signs of shrinking crude stockpiles in the U.S. and rising demand in China countered speculation that Europe’s debt crisis will temper fuel demand. Gold may snap its longest winning streak in more than three decades as its advance to a record on U.S. and European sovereign-debt woes spurred sales. Copper and zinc advanced for a third day in London on expectations that Chinese imports may increase in the second half to replenish stockpiles. Markets were trading marginally higher after opening on a soft note led by gains in heavyweight Infosys, Larsen & Toubro and ITC. The Nifty touched a low of 5,557 in opening trades and recovered shortly after. The index was up 12 points, at 5,579 and Sensex advanced 44 points, at 18,551. Among individual stocks, the third largest lender, HDFC Bank was up 0.2% and Ashok Leyland declined 1.2% ahead of first quarter results today. BSE IT index was leading the gains, up 0.5%. HCL Technologies advanced 1%, Patni Computers added 0.9% and Infosys was up 0.6%. Auto shares slipped in trade, the BSE Auto index was down 0.4%. Tata Motors slipped 2% as the stock went ex-dividend, Hero Honda declined 0.5% and Amtek Auto was down 0.4%. From the broader markets, the midcap and the small cap indices were flat, down 0.1% and 0.3% each. Market breadth was positive 933 stocks advanced for 487 stocks which declined.