Markets Trade on a Positive Note

The Global Markets opened in mixed note. U.S. stocks advanced, erasing earlier losses, as speculation that China may invest in Italy triggered a rally that lifted the Dow Jones Industrial Average more than 200 points in the last 45 minutes of trading. European stocks slumped for a second day, dragging the benchmark regional gauge to its lowest level since July 2009, as speculation mounted that Germany is preparing for Greece to default. This morning most Asian stocks rose, with the benchmark regional index rebounding from a one year low, as raw material and energy producers advanced on increased oil and copper prices. In commodities, Oil rose for a second day amid speculation crude stockpiles shrank last week in the U.S., the world’s biggest consumer of the commodity. Brent’s premium to New York futures narrowed to the lowest in three weeks. Gold rebounded as a two-day slump made the precious metal attractive to investors looking to safeguard their wealth against financial turmoil and economic uncertainty. Copper advanced for the first time in three days after news reports that China may invest in Italy eased concerns over the financial instability in Europe, leading to a broad market rally. Aluminum also gained. On the domestic front, Indian markets rebounded in opening trades, taking cues from their Asian peers, as investors flocked to the beaten-down IT stocks. The Nifty advanced 53 points, at 5,000 and the Sensex added 172 points, at 16,674. Foreign institutional investors were net sellers of Rs 934 crore in cash on Monday, while the domestic institutional investors bought shares worth Rs 428 crore. IT shares, which bore the brunt off selloff yesterday, were the first to recover as investors picked up battered stocks. BSE IT index was the top gainer, up 2.2 per cent. Realty shares were also on a firm ground, the index was up 1.7 per cent. Among the heavyweights, Infosys, ICICI Bank and Reliance Industries contributed 60 points on the Sensex advance. From the broader markets, midcap and the small cap indices were up by over 1 per cent each. The market breadth was positive, 364 stocks declined for 1127 stocks which advanced.