Markets Continue to Trade on a Negative Note

The Global Markets emanate negative cues this morning. U.S. stocks fell, dragging the Standard & Poor’s 500 Index down the most in almost two months, as lawmakers indicated they were no closer to reaching a compromise on the federal debt limit. European stocks fell for a third day as earnings from Clariant AG to Merck KGaA missed estimates and U.S. politicians wrangled over the nation’s debt limit. This morning Asian stocks fell for a third day this week as U.S. lawmakers failed to break a deadlock over raising the federal debt limit, and durable goods orders in the world’s biggest economy unexpectedly declined. In commodities, Oil declined for a second day in New York as investors bet that rising crude supplies and signs of a slowing economy in the U.S. indicate fuel demand may falter in the world’s biggest consumer of the commodity. Gold traded within 0.9 percent of a record as U.S. policy makers pushed competing proposals to increase the nation’s debt ceiling before an Aug. 2 deadline in a bid to prevent a default that may roil financial markets. Copper fell for the second time this week after orders for U.S. durable goods unexpectedly dropped, damping the outlook for metal demand. Markets continued to languish near the day's low with weakness in metal and IT stocks. Negative cues from global markets also dampened sentiments. The Sensex, was down 1195 points at 18,237. Nifty was down 62 points at 5,483. Markets are likely to be choppy today as traders roll over positions ahead of the derivatives expiry. BSE metal index slipped 2% to 14,376 , mirroring cues from the LME. FMCG major, ITC gained 1% at Rs 203 ahead of its results today. ICICI Bank, Power Finance Corporation, Bhushan Steel, Idea Cellular and TVS Motor unveil Q1 results tomorrow.