Markets Trade on a Negative Note

The Global Markets emanate negative vibes this morning. U.S. stocks tumbled, dragging benchmark indexes to their biggest slump since December 2008, amid concern that a downgrade of the nations credit rating by Standard & Poor’s may worsen an economic slowdown. European stocks slid for a seventh day, pushing the Stoxx Europe 600 Index down 21 percent from its February high and into a so-called bear market, on concern that Standard & Poor’s downgrade of the U.S.’s sovereign rating and the region’s credit crisis will lead to a global recession. This morning Asian stocks fell, with the regions benchmark index plunging the most in almost three years, as the ripple effects of Standard & Poor’s downgrade of U.S. debt continued to roil global equity markets. In commodities, Oil in New York headed for its biggest two-day plunge in more than two years as the U.S. credit rating cut and rising stockpiles stoked concern an economic slowdown will worsen, reducing demand in the world’s biggest crude consumer. Gold extended its rally to a record for a second day as the global rout in equities and crude oil deepened on concern the economic slowdown will worsen after Standard & Poor’s cut the U.S. credit rating. Copper slumped to an eight-month low in London and nickel and zinc tumbled on concern that Standard & Poor’s downgrade of the U.S. long-term credit rating may damp the global economic recovery. Markets extended deep plunge posted in the past two sessions in opening trades following rout in equities across the world. The markets recovered marginally, the Nifty was trading at 5035, down 82 points and the Sensex was at 16,717, down 272 points. The Nifty touched a low of 4,946 and the Sensex plunged to 16,432 in the opening trades. The Nifty was last seen below the 5000-level in June 2010. Among the sectoral indices, BSE IT index continued to be hammered by the investors as they feared that the sector would get worst hit if the west was to slip back into a recession. Wipro fell over 5%, TCS lost 4.9% and HCL Technologies was off 3.1%. BSE Metal index was also the top loser for the third straight session. NALCO was down almost 6%, Tata Steel lost 4.5% and Hindalco Industries gave up 3.8%. Top losers on the Sensex were Tata Motors, down 5%, Sun Pharma slipped 4% and DLF plummeted 3.4%. ONGC was the only component trading in the green, up 0.2%. Among the broader markets, the midcap and the small cap indices were down over 2% each. Markets breadth was extremely negative, 1,671 stocks declined for 204 stocks which advanced.