Markets Trade on a Negative Note; Nifty Breaks 5K mark

The Global Markets emanate mixed vibes this morning. U.S. stocks declined, wiping out an earlier advance, as Dell Inc. forecast weaker sales and two Federal Reserve officials expressed concern about the amount of stimulus being applied to the economy. European stocks climbed, with the benchmark Stoxx Europe 600 Index rising for a fourth day out of five, as some investors speculated that the 9.2 percent drop in equities this month makes their valuations attractive. This morning Asian stocks fell for the first time in four days after two Federal Reserve officials said they opposed a pledge to keep U.S. interest rates at record lows and as the yen rose toward a post-World War II high. In commodities, Crude Oil dropped from a two-day high in New York as investors bet fuel demand will falter amid signs of a weakening economy in the U.S., the world’s biggest crude-consuming nation. Gold pared losses made in early Asian trading as concern about a global slowdown spurred demand for a safe haven. Futures also eliminated a decline. Copper dropped after Morgan Stanley and Deutsche Bank AG reduced their economic growth forecasts for China, the world’s biggest metals consumer. The markets opened on a flat note tracking subdued Asian markets, and soon slipped into the red due to selling in IT and banking shares. The Nifty has declined 20 points, to 5,037, and the Sensex dipped 73 points, at 16,767 in the morning session. The markets have lost further ground in mid-day trades. The Sensex is at 16,616, weaker by 223 points and the Nifty is at 4990, down 65 points. Among the sectoral indices, BSE IT index is at 5,100 and BSE Bankex is at 11,312, both down 1% each. The market breadth is negative with 630 advances as against 1430 declines on BSE.