Negative Global Cues Weighs Heavy on Indian Markets

The Global Markets opened in negative note. U.S. stocks fell, driving the Standard & Poor’s 500 Index to the sixth drop in the past seven weeks, as concern Greece’s finances are deteriorating overshadowed President Barack Obama’s $447 billion plan to stimulate growth. European stocks fell for the first week in three amid concern policy makers won’t be able to stop the regions sovereign debt crisis from growing and damaging the economic recovery. This morning Asian stocks fell, with the benchmark index heading to its lowest level in more than three weeks, amid speculation Greece may be nearing a default on its sovereign debt, bolstering concern that the crisis will spread to the banking system. In commodities, Oil slid for a third day in New York as investors bet demand for fuel may falter amid signs European policy makers are struggling to contain the region’s debt crisis. Gulf of Mexico producers resumed production as the threat of storms eased. Gold fell for a second day as concern about a potential Greek default drove the dollar higher and some investors sold the metal to cover losses in other markets amid concern the European debt contagion is worsening. Copper declined for a second day to the lowest level in almost three weeks on mounting concern over Europe’s sovereign debt crisis, reducing prospects of growing demand for industrial metals. On the Indian front the markets taking negative cues from its glo0bal peers trade on a negative note this morning. The Sensex trades at 16598 down by 268 points while the Nifty trades at 4974 down by 84 points. The main draggers this morning are the IT, Metal and Banking indices that trades with a loss of more than two percentage points. The broader markets too emanate negative vibes as both the small cap and mid cap indices trade lower by more than one percentage points. The market breadth is negative with 662 advances as against 1447 declines on BSE.