Markets Trade in Red

The Global Markets opened on a positive note. U.S. stocks rose, sending the Standard & Poors 500 Index higher for a third day, as French President Nicolas Sarkozy and German Chancellor Angela Merkel said they are convinced Greece will remain in the euro zone. European stocks rose for a second day amid speculation China may still buy the regions government bonds even after Premier Wen Jiabao said indebted countries must not rely on bailouts. Asian stocks climbed, with the regional benchmark index rebounding from its lowest level in more than a year, after French President Nicolas Sarkozy and German Chancellor Angela Merkel said Greece will stay in the euro zone. In commodities, Crude Oil dropped for a second day in New York as investors bet that increasing U.S. fuel stockpiles and signs of a weakening economy indicate demand will falter in the world’s biggest crude-consuming nation. Gold declined for a second day after German and French leaders expressed support for Greece to remain in the euro area and amid speculation China may help the Region’s most-indebted nations. Copper rebounded after German and French leaders expressed support for Greece remaining in the euro area, easing concern that Europe’s sovereign debt crisis may crimp commodity demand. Zinc, tin and lead also gained. The markets began the trading session on a firm note taking cues from the global peers. the BSE Sensex is at 16,657, down by 52 points and the S&P CNX Nifty is at 5,003, down by 8 points. Among the sectoral indices, BSE Realty and Metal indices are leading the losses, having gained nearly a percent each. The overall market breadth is positive as 929 stocks have advanced against 429 declining ones on the BSE.