Markets Trade on a Flat Note

The Global Markets emanate mixed vibes this morning. U.S. technology stocks rallied on improving earnings, sending the Nasdaq-100 Index to a 10-year high and extending a weekly gain for the Standard & Poor’s 500 Index, while lower-than-estimated results at Caterpillar Inc. dragged the Dow Jones Industrial Average lower. European stocks climbed this week, snapping two weeks of losses, as euro-region leaders agreed on a second bailout package for Greece in a bid to end the regions debt crisis. This morning Asian stocks fell, led by banks and exporters, as the failure to raise the U.S. federal debt limit raised the prospect of a default that may threaten the global recovery. In commodities, Gold surged to a record as U.S. lawmakers failed at the weekend to reach an agreement on raising the federal debt limit, boosting haven demand on concern that the government of world’s largest economy may default. Oil declined for the first time in five days on concern a failure to reach a deal on raising the U.S. debt limit may cause the nation to default, threatening the economy of the world’s biggest crude consumer. Copper slumped for a fourth day as the failure to raise the U.S. federal debt limit increased the prospect of a default that may threaten the global recovery, slowing demand for industrial metals. Markets were trading flat after opening marginally lower tracking weak Asian peers on lack of agreement on US debt deal, and investors turning jittery ahead of Reliance Industries June quarter earnings today and Reserve Bank of India policy on rate hike on Tuesday. After touching a low of 5,616 during opening trades, the Nifty was trading flat at 5,638, up 5 points. The BSE benchmark Sensex is up17 points, at 18,739. Top gainers on Sensex were Reliance Communications, up 3%, Bharti Airtel added 2.8% and Mahindra & Mahindra was up 1.5%. Prominent losers were ITC, Infosys and DLF, down 1% each. Midcap and small cap indices were up 0.4% and 0.6% each. Market breadth was positive 997 stocks advanced, for 578 stocks which declined.