Markets Trade on a Flat Note This Morning

The Global Markets emanate positive vibes this morning. U.S. stocks rose, sending the Standard & Poor’s 500 Index to its biggest rally since March, as President Barack Obama endorsed a bipartisan deficit-reduction plan. European stocks gained, rebounding from a seven-month low, as companies from Novartis AG to International Business Machines Corp. reported earnings that beat estimates. This morning Asian stocks rose, with the regional benchmark index set to close at its highest level in a week, on optimism U.S. lawmakers will reach an agreement to cut the budget deficit and after Apple Inc.’s profit topped estimates, boosting the earnings outlook for exporters. In commodities, Oil advanced for a second day in New York as investors bet that shrinking stockpiles and signs of economic recovery in the U.S. indicate fuel demand will increase in the world’s biggest crude-consuming nation. Gold may decline for a second day, extending a drop from a record, after President Barack Obama backed a plan to cut the deficit, potentially paving the way for raising the U.S. debt ceiling and avoiding default. Copper futures rose to a three-month high after a government report showed housing starts in the U.S., the world’s second-biggest user of the metal, gained more than forecast in June. Markets were trading firm after opening higher following positive global cues as US debt concerns eased. The Nifty index touched a high of 5,645 in opening trades and was trading at 5,625, up 12 points. The benchmark Sensex was trading higher by 44 points, at 18,698. India's third largest IT services company Wipro beat analysts’ expectations, reporting 1.2% rise in consolidated net profit to Rs 1335 crore against Rs 1339 crore last year led by increased client spending. However the stock slipped 1% to Rs 411 in opening trades. Consolidated operating margin for June quarter was maintained at 23% despite the impact of salary revision; however it was lower than 25% in the same period last year. From the broader markets the midcap and the small cap indices were up 0.4% and 0.5% each. Top gainers on the Sensex were Reliance Communication, up 1.7%, DLF advanced 1.5% and Bajay Auto was up 0.9%. Only three components on the Sensex were trading in the red, Wipro was down 1.5%, Hindalco slipped 0.4% and BHEL was down 0.1%. Market breadth was positive 963 stocks advanced for 353 stocks which declined.