Markets Trade in Red: Nifty Below 5K Mark

The Global Markets opened in mixed cues. U.S. stocks fell this week as the Standard & Poor’s 500 Index posted its biggest monthly decline in more than a year and a report showing employment stagnated in August fueled concern the economy may slip into a recession. European stocks rose for a second week as U.S. consumer spending gained, business activity and factory orders topped forecasts and Federal Reserve minutes showed some policy makers wanted to add to stimulus measures. This morning Asian stocks fell, with the benchmark regional index headed for its biggest decline in two weeks, as mining companies and exporters dropped after the U.S. jobs market stalled in August, fuelling concern the world’s largest economy may be headed for a recession. In commodities, Crude Oil declined for a second day in New York as investors speculated that signs the U.S. and Chinese economies are weakening indicate fuel demand will falter in the world’s biggest crude-consuming nations. Gold may fall as some investors sell the metal for cash to cover losses in other markets after global equities slumped on concern that economic growth in the U.S. is slowing and the sovereign-debt crisis in Europe is worsening. Copper climbed for the first day in three on speculation that the global market will likely remain in short supply for a third straight year in 2012 on China-led demand. The markets are trading lower this morning tracking weak global markets after disappointing US jobs data and profit booking seeped in after three sessions of gains last week. The Nifty was down 52 points, at 4,987 and the Sensex slipped 182 points, at 16,638. BSE IT index was the top loser, down over 2%. HCL Technologies was down 1.6%, TCS declined 1.5%, and Wipro was off 0.5% and BSE Consumer Durable was the only index which was trading in the green, up 0.4%. Blue Star was the top gainer, up 1.7%, Gitanjali Gems added 1.6% and VIP Industries was up 1.2%. From the broader markets, the midcap and the smallcap indices were down over 0.5% each. The Market breadth too is negative, 926 stocks declined for 826 advancing stocks.