Markets Trade on a Positive Note

The Global Markets emanate positive vibes this morning. U.S. stocks rose, capping the biggest rally in more than two years for benchmark indexes, as the Federal Reserve said it was prepared to use a range of tools to bolster the economy following yesterdays rout in equities. European stocks climbed from a two- year low, snapping a seven-day slump in the benchmark Stoxx Europe 600 Index, amid speculation the Federal Reserve will act to restore confidence in the markets. This morning Asian stocks rebounded from a two- week rout that wiped $7.8 trillion from global equity markets, after the U.S. Federal Reserve pledged to keep its benchmark interest rate at a record low through mid-2013 and said it may use other tools to bolster the world’s biggest economy. In commodities, Oil rebounded from a 10-month low in New York as investors bet fuel demand will increase amid shrinking stockpiles and comments by the Federal Reserve that it is prepared to use a range of tools to bolster the economy. Gold futures gained for a third day after the Federal Reserve, seeking to bolster the economy, pledged to keep interest rates low through mid-2013, boosting demand for the metal as a haven investment. Copper rallied for the first time in six days after the U.S. Federal Reserve pledged to keep its benchmark interest rate at a record low through at least mid- 2013. Other metals including nickel and zinc also advanced. The Indian markets following cues from its global peers started off on a positive note to trade above the psychological level of 17K. At this point of time Sensex trades at 17159 up by 301 points while the Nifty trades at 5165 up by 92 points. All the sectoral indices trade in green this morning. The main gainers are the Auto, Realty and IT indices gaining more than three percentage points. The market breadth is positive with 2110 advances as against 402 declines.