Negative Global Cues Drags Market Lower

The Global Markets opened in negative cues. U.S. stock futures fell, indicating the Standard & Poor’s 500 Index may slide for a third day, as European markets showed growing concern the sovereign debt crisis is worsening. European stocks tumbled, with the Stoxx Europe 600 Index posting its biggest two-day drop since March 2009, as investors speculated that support for bailing out Europe’s indebted nations may fade. This morning Asian stocks fell, with a regional benchmark index set for its biggest three day decline in two weeks, on concern that Europe can’t control its sovereign-debt crisis, denting the outlook for the global economy. In commodities, Oil extended declines in New York as investors speculated that signs of a weakening U.S. economy and increasing crude stockpiles indicate fuel demand will falter in the world’s biggest consumer of the commodity. Gold may advance toward a record on speculation Europe’s debt crisis will worsen, damping economic growth and driving investors to protect their wealth. Copper in London dropped as much as 0.3 percent to $8,935 a metric ton, falling for the fourth day on concern slowing global economic growth may damp demand for industrial metals. On the Indian front markets edged lower for the second consecutive day, tracking weak global cues as sovereign debt concerns in Europe resurfaced. The Nifty opened in the red and was down 50 points at 4967, and the Sensex slipped 149 points at 16,564. On Monday, the foreign institutional investors were net buyers of Rs 133 crore and domestic institutional investors were net buyers of Rs 147 crore. Among the sectoral indices, BSE IT and banking indices were leading the losses in morning trades, down almost 1% each. From the broader markets, the midcap and the small cap indices were trading marginally higher. Market breadth is negative with 940 advances as against 1052 declines on BSE.