Markets Slips into Red

The Global Markets emanate negative vibes this morning. U.S. stocks tumbled, erasing the 2011 gain for the Standard & Poor’s 500 Index, after an unexpected decline in consumer spending increased concern that growth in the world’s largest economy is faltering. European stocks tumbled to the lowest level in 11 months amid concern that a slowdown in the world’s largest economy may derail global growth. This morning Asian stocks fell, poised for the biggest two-day drop since March, as exporters tumbled after rating agencies warned the U.S. may be downgraded and an unexpected decline in consumer spending increased concern that growth in the world’s largest economy is faltering. Oil declined for a fourth day in New York, its longest losing streak since May, as investors bet that signs of a slowing U.S. economy indicate fuel demand will falter in the world’s biggest crude-consuming nation. Gold declined after a rally to an all-time high prompted some investors to reduce their holdings even amid persistent investor concern that the global recovery may be losing momentum. Copper declined on the London Metal Exchange as a strike at the world’s largest mine in Chile may be nearing an end and U.S. consumer spending unexpectedly fell, deepening concern about a slowdown in the second largest user. Markets were trading lower following rout in equity markets across the world on concerns of slowing economic growth in US and sovereign debt crisis Europe. The Nifty made a gap down opening and touched a low of 5,385 however, it recovered marginally in the morning session and was trading at 5,414, down 45 points. The BSE benchmark Sensex was off 137 points, at 17,972. From the sectoral indices BSE Realty and auto indices were the top losers, down over 2.5% each. From the realty space Indiabulls Unitech plunged and Orbit Corporation lost almost 3% each. From the auto space, Tata Motors fell over 2%, Cummins India and Mahindra and Mahindra were down over 1% each. Among individual stocks Bharti Airtel slipped over 1% ahead of the June quarter results. Top losers on the Sensex were DLF, down 4.3%, Jaiprakash Associates declined over 3% and Tata Motors was off 2.8%. Market breadth was negative, 1298 stocks declined for 344 stocks which advanced.