Markets Trade Below 16K Mark

The Global Markets opened on a mixed note. U.S. stocks fell this week, sending the Dow Jones Industrial Average to the biggest loss since 2008, as the Federal Reserve said risks to the economy have increased and concern grew that policy makers will fail to spur growth. European stocks had the biggest weekly drop in seven as the Federal Reserve said it sees ‘significant downside risks’ for the economy and speculation grew that policy makers will be unable to solve the debt crisis. This morning Asian stocks fell, sending the MSCI Asia Pacific Index to the lowest since June 2010, as Europe’s failure to tame the regions sovereign-debt crisis threatens global economic growth. In commodities, Oil traded near the lowest in more than six weeks in New York as investors speculated Europe’s sovereign debt crisis will cut fuel demand amid ample supplies. Gold may drop for a fourth day on speculation European governments may step up measures to prevent the debt crisis from worsening, easing demand for a haven. Copper headed for the longest losing streak since December 2008 on worries that a failure to contain Europe’s sovereign-debt crisis may lead to a slump in demand. Lead, nickel and tin also dropped. The Indian markets reacted in line with its global peers to trade on a negative note this morning. The Sensex trades below the 16000 mark at 15960 declining 201 points while the Nifty trades at 4799 down by 68 points. All the sectoral indices trades in red this morning. The main draggers this morning are the Metal and Consumer Durables indices trading in red declining more than two and half percentage points. The others to contribute to today’s fall are the Oil & Gas, Capital Goods and PSU indices. The market breadth is negative with 680 advances as against 1380 declines.