Markets Trade Flat on a Negative Note

The Global Markets emanate negative vibes this morning. U.S. stocks tumbled, sending the Dow Jones Industrial Average to the lowest level since September, as banks slumped on concern that Europe will fail to contain its debt crisis and that the economy is faltering. European stocks fell to a two-year low amid speculation the region’s debt crisis is spreading and as the Federal Reserve’s plan to hold interest rates failed to ease concern that the economic recovery is stalling. This morning Asia’s benchmark stock index pared its seventh loss in eight days as concern Europe will fail to contain its debt crisis was tempered by higher profits from the U.S. to Australia. In commodities, Oil traded near a three-day high in New York as shrinking U.S. crude stockpiles countered concern that the European sovereign debt crisis is worsening. Spot gold fell as much as 0.6 percent to $1,782.55 an ounce and last traded at $1,783.57 by 10:28 a.m. Singapore time. It earlier climbed to a record $1,814.95 an ounce, exceeding $1,800 for the first time. Copper fell for the seventh time in eight sessions as the Federal Reserve’s pledge to keep interest rates at a record low until mid-2013 failed to convince investors that economic growth will be sustained. Following weak global cues, the markets opened in the red. The Sensex is currently down 37 points at 17,093 and the Nifty is down 11 points at 5,150. Earlier in the day, the Sensex started at 17,056 and the Nifty started down 31 points at 5,128. Among the sectoral indices, Realty index down by more than one per cent was the top loser among the sectoral indices. Healthcare index has jumped over one per cent to 6,098. The market breadth is negative with 1074 advances as against 1301 declines.