Markets Trade in Green Backed By Positive Global Cues

The Global Markets emanate positive vibes this morning. U.S. stocks rose for a fourth day as the European Central Bank and international policy makers coordinated to lend dollars to banks to tame the credit crisis, offsetting concern spurred by signs unemployment is worsening. European stocks rallied as Germany and France said Greece will remain a member of the euro and the European Central Bank announced coordinated measures with the Federal Reserve to ensure banks have enough dollars. This morning Asian stocks rose, trimming losses on the regional benchmark index this week, after the European Central Bank and international policy makers coordinated to lend dollars to euro-area banks, increasing confidence the region’s debt crisis may be contained. In commodities, Crude Oil headed for a fourth week of gains in New York, the longest winning streak since July, as investors speculated that a coordinated international plan to contain Europe’s debt crisis will support economic growth and boost fuel demand. Gold declined for a third day and was set for its biggest weekly loss in four months after the European Central Bank and international policy makers coordinated to lend dollars to euro-area financial institutions. Copper climbed for a second day after the European Central Bank and international policy makers coordinated to lend dollars to banks to help tame the credit crisis, boosting demand prospects for industrial metals. The markets have witnessed a positive opening, this trading session, on back of positive global cues. The BSE Sensex is at 17,039, up 162 points and the Nifty is at 5,117, up 42 points. On Thursday, the Foreign Institutional Investors were net buyers of Rs 137 crore in cash and the Domestic Institutional Investors were net buyers of Rs 4 crore. Markets are expected to react further, to RBI's decision to go for another rate hike to tame price pressures in order to boost growth in its monetary review, due today. The chances of RBI hiking the rates by 25 bps increased after August's data revealed that inflation rose to a 13-month high. Meanwhile, after market hours the government hiked petrol prices by Rs 3 per litre. Among the sectoral indices, BSE Oil & gas, PSU and IT indices are leading the gains. The overall market breadth is positive as 804 stocks have advanced against 424 declining ones.