Markets Trade in Red on a Flat Note
The Global Markets emanate mixed vibes this morning. U.S. Stocks closed tomorrow for Independence Day. European stocks climbed for a sixth day, extending the biggest weekly advance for the Stoxx Europe 600 Index in a year, as finance ministers approved an aid payment to Greece. This morning Asian stocks swung between gains and losses as Tokyo Electric Power Co. surged in Tokyo, while banks declined in China after Moody’s Investors Service said the potential scale of problem loans at the lenders is greater than anticipated. In commodities, Oil traded near $95 a barrel for a second day in New York, failing to extend last week’s 4.2 percent rally, as investors bet China will step up efforts to cool its economy, tempering fuel demand in the world’s biggest energy user. Gold gained for the first time in three days in London as some investors bought the metal after its drop to a six-week low and as a weaker dollar spurred demand for an alternative asset. Copper and zinc rose to a two-month high in London on speculation China, the worlds biggest user of the metal, is near the end of monetary tightening after figures showed service industries slowed. The markets opened marginally higher, but slipped into the negative in the morning session following subdued global cues and profit booking in realty shares. The S&P CNX Nifty touched a high of 5,658 in opening trades and was trading down 16 points, at 5,633 and the Sensex declined 36 points, at 18,778. Foreign Direct investment doubled to $4.66 billion in May against $2.21 billion last year. Realty shares were leading the losses in the morning session; the index was down 1.2%. Anant Raj Industries declined 2.5%, DLF was off 2.1% and Sobha Developers fell 2%. Market breadth was negative, 797 stocks declined for 864 stocks which advanced.