Markets Trade on a Positive Note

The Global Markets emanate positive vibes this morning. U.S. stocks rose, erasing last week’s drop, as $21.5 billion in takeovers and valuations near the cheapest level in two years helped the Standard & Poor’s 500 Index extend its best three-day rally since 2009. European stocks rose, extending the biggest three-day rally for the benchmark Stoxx Europe 600 Index in 15 months, after last week sliding to the cheapest valuation in more than two years. This morning Asian stocks, trading at their cheapest since December 2008, advanced for a second day as Google Inc.’s largest acquisition boosted technology shares and billionaire investor Warren Buffett said he was buying equities at “sale” prices. In commodities, Oil dropped from the highest in almost two weeks in New York as investors bet that signs of a slowing global economy indicate fuel demand will falter. Gold may climb for a second day as physical buyers made purchases after the metals drop from its all-time high above $1,800 an ounce, and Paulson & Co., a hedge fund run by John Paulson, stuck with a bet on further gains. Copper rose for a third straight session as gains in global equities signaled improving prospects for the economy and metals demand. The markets have scaled higher this morning, led by gains in IT shares, on the back of firm cues from the global markets. The Nifty was up 35 points at 5,108, after advancing to high of 5,132 in the opening trades. The Sensex was up 129 points, at 16,969. Markets may take cues from the July inflation data which will be released around noon today. Among the Sectoral indices, BSE IT index added 1.6 per cent followed by BSE Metal index, which was up 0.8 per cent. From the broader markets, the midcap and the small cap indices were up 0.6 per cent and 0.7 per cent each.