Markets Trade in Red

The Global Markets opened on a mixed note this morning. U.S. stock futures fell, indicating the Standard & Poor’s 500 Index will drop after posting the third-biggest weekly gain since 2009, as investors await a decision on whether Greece will receive a payment that would help prevent a default. European stocks rose for the third week in four as Germany and France said Greece will remain a euro member and the European Central Bank announced measures with the Federal Reserve to ensure banks have enough dollars. This morning Asian stocks fell after European policy makers failed to introduce a plan to stem the regions debt crisis, dimming the earnings outlook for banks, exporters and raw-material producers. In commodities, Gold gained for a second day on renewed concern that Europe’s debt crisis, which began in Greece, may worsen after officials failed to come up with a plan to prop up the region’s faltering economy, boosting demand for a haven. Copper tumbled to the lowest level in more than a month and led a decline in base metals as the European debt crisis persisted, intensifying concern that the global economy is set to slow, and hurting commodity demand. Crude Oil fell to a one-week low in New York on speculation that fuel demand will falter amid signs of weaker economic growth in Europe and the U.S., the world’s largest consumer of crude. Markets were trading lower after opening in the red, tracking losses in Europe as the Greece debt concerns come to the fore. The Nifty declined 35 points, at 5,048 and the Sensex was down 124 points, at 16,809. On the sectoral front, banking and capital good indices were leading the losses. Investors cashed out of Axis Bank, ICICI Bank and State Bank of India, each down almost 2 per cent on worries that 12 consecutive rate hikes since March 2010 will dampen credit demand. From the Capital Goods space, Usha Martin fell almost 2 per cent, Larsen & Tourbo and Siemens were down over 1 per cent each. From the broader markets, the midcap and the smallcap indices were trading flat. Major losers on the Sensex were DLF, down 3 per cent, Larsen & Tourbo and Tata Motors slipped almost 2 per cent each. Only three components on theSensex were trading in green. Sun Pharma advanced1 per cent followed by Hero Motor Corp and ONGC, up 0.4 per cent and 0.2 per cent each. Market breadth was negative, 710 stocks declined, for 532 stocks which advanced.