Markets Trade in Green on a Flat Note

The Global Markets opened in mixed note. U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for a second day, as French banks eased concerns over their access to funding and investors watched for signs of progress in taming Europe’s debt crisis.

European stocks rose for the first time in three days, with the benchmark Stoxx Europe 600 Index rebounding from a two-year low, as banking shares and carmakers advanced. This morning Asian stocks swung between gains and losses as oil companies advanced on higher crude prices, countering declines by Japanese utilities.

In commodities, Oil traded near a six-week high in New York as investors speculated that storm disruptions in the Gulf of Mexico reduced supplies in the U.S., the world’s biggest crude consumer.

Gold may advance for a second day as Europe’s sovereign-debt crisis boosts demand for the metal as a haven investment. Copper may climb for a second day on speculation that labour disputes will further cut supply as Peruvian miners plan to strike amid increasing demand from China.

Indian markets were trading flat in the morning session following subdued cues from Asia and as investors turned to the sidelines ahead of the August inflation data. The Nifty advanced 26 points, at 4,967 and the Sensex was up 71 points, 16,539.

The August inflation data, due around noon today is expected to set the tone for the Reserve Bank of India's monetary policy on Friday. Foreign Institutional Investors have turned net sellers in the Indian equity markets; they were net sellers for the second consecutive day as they sold shares worth Rs 468 crore in cash, while the Domestic Institutional Investors bought shares worth Rs 122 crore.

Among the sectoral indices, IT shares were leading the gains for the second straight session. HCL Technologies was up 2 per cent, Infosys added 1.6 per cent and Mphasis was up 1.5 per cent. Capital Goods index on BSE slipped 0.5 per cent due to concerns of rising interest rates affecting the investment cycle. BEML was down 3.2 per cent, BGR Energy and ABB decline over 1 per cent each. The small cap and the midcap indices were up 0.3 per cent and 0.7 per cent each. Market breadth was positive, 1,138 stocks advanced for 549 declining stocks.