Markets Witness Volatile Trades This Morning

The Global Markets emanate mixed vibes this morning. U.S. stocks fell, a day after the best rally since March for the Standard & Poor’s 500 Index, as concern the government will fail to increase the debt limit overshadowed higher-than-estimated earnings at Apple Inc. European stocks gained for a second day as speculation grew that U.S. lawmakers will agree to increase the nation’s debt ceiling and banks rallied before tomorrow’s European Union summit on the regions debt crisis. This morning most Asian stocks fell, dragging the regional benchmark index toward its first loss in three days, as Korean technology companies reported lower profits and as a deal to prevent a U.S.-debt default remained elusive. In commodities, Oil traded little changed in New York, giving up earlier gains sparked by shrinking U.S. oil stockpiles. Gold, trading within 0.7 percent of an all-time high, may decline after policy makers in Europe and U.S. made progress tackling sovereign-debt challenges, trimming demand for wealth protection. Copper in London pared gains to trade little changed at $9,750 a metric ton after HSBC Holdings Plc and Market Economics published a preliminary reading for manufacturing in China in July. Markets opened lower following weak cues from Asia as uncertainty over consensus on US debt ceiling loomed. The Nifty slipped 6 points, at 5,560 and the Sensex declined 10 points, 18.512. Markets will take cues from Reserve Bank of India policy next week; economists expect 25 bps rate hike as Inflation accelerated to 9.4% in the month of June.  Consecutive rate hikes have caused analysts’ to scale down India's growth expectation to sub 8% for FY12. Among the sectoral pack BSE FMCG index was top gainer, up 0.2%. Marico was up 1%, United Breweries added 0.5% and Godrej Industries was up 0.4%. The small cap and the midcap indices were trading flat. Market breadth was negative 680 stocks advanced for 732 stocks which declined.