Markets Trade in Green

The Global Markets opened on a positive note. U.S. stocks advanced, giving the Dow Jones Industrial Average its biggest increase in a month, amid speculation that European policy makers will act to prevent the regions debt crisis from getting worse. European stocks rose for a second day as foreign governments and central banks urged policy makers in Europe to intensify efforts to contain the region’s debt crisis following meetings with the International Monetary Fund. This morning Asian stocks rebounded from their lowest level since May 2010 after two days of gains in U.S. equities amid optimism that European leaders may be closer to agreeing ways to tame the region’s credit crisis. In commodities, Oil advanced for a second day in New York on speculation steps by Europe to tame its sovereign debt crisis will temper a slowdown in the region's economy and demand for raw materials. Gold futures advanced for the first time in five days as the biggest three-day drop since 1983 encouraged purchases by investors seeking a store of value amid turmoil in global financial markets. Copper in London advanced by as much as 1.5 percent to $7,375 a metric ton, climbing for the first time in eight days as European officials discussed plans to resolve the region’s debt crisis. Indian markets were trading higher this morning session following gains across Asia, amid expectations that the policy makers in Europe would support the Euro-zone financial system. The Nifty advanced 81 points, to 4,913 and the Sensex gained 264 points, at 16,314. While the global situation has improved, there may be some amount volatility ahead of the F&O expiry on Thursday. Foreign Institutional Investors continued to be net sellers in Indian equities, they sold Rs 1083 crore in the cash, while the domestic institutional investors were net buyers of Rs 575 crore on Monday. Among the sectoral indices, the BSE Realty and Consumer Durables were leading the gains, up almost 3 per cent each. From the broader markets, the midcap and the small cap indices were up around 1.5 per cent each. Market breadth was positive, 1411 stocks advanced for 326 declining stocks.