Markets Await for RBI Policy; Trades on a Flat Note

The Global Markets emanate mixed vibes with a negative bias this morning. U.S. stocks retreated, pulling the Standard & Poor’s 500 Index down from a two week high, as Republicans and Democrats wrangled over separate plans to raise the federal debt limit and avoid a government default. European stocks slid, snapping a four-day rally, after President Barack Obama and Congress failed to reach a deal to raise the U.S. debt limit, increasing concern that the world’s largest economy may default. This morning Asian stocks rose after U.S. President Barack Obama said he remains confident the current stalemate over raising the nation’s debt ceiling can be resolved, boosting speculation the country will avoid a government default. In commodities, Gold traded within 0.6 percent of an all-time high as U.S. lawmakers remained deadlocked on how to tackle the country’s debt crisis and avert a default before an Aug. 2 deadline, stoking demand for a protection of wealth. Oil traded near a two-day low in New York as President Barack Obama warned that the nation’s burgeoning debt threatens to do serious damage to the U.S. economy, the world’s largest crude consumer. Copper fell for the third time in four sessions amid intensifying concern that the U.S. will default, after lawmakers failed to agree on raising the debt ceiling, damping growth prospects. Markets were trading flat after opening higher as investors turned to the sidelines ahead of Reserve Bank of India policy today. The Nifty touched a high of 5,702 in opening trades and was trading flat at 5687, up 4 points at 09:45 hrs. The BSE benchmark Sensex was trading at 18,884, up 10 points.  From the broader markets, the midcap and the small cap indices were up 0.3% each. Market breadth is positive with 819 stocks advanced for 382 stocks which declined.