Markets Witness Lacklustre Move In Early Trades

The Global Markets gives out positive cues this morning. U.S. stocks rose, erasing the Dow Jones Industrial Averages 2010 decline, after FedEx Corp. boosted its profit forecast and a report showing improved new home sales eased concern about the economy. European stocks advanced for a fifth day as European Union stress-test results showed the majority of the regions banks are adequately capitalized and U.S. home sales rose more than forecast. This morning Asian stocks rose, driving the MSCI Asia Pacific Index higher for the third straight day, as better- than-estimated new home sales in the U.S. boosted the prospects for global economic growth. In commodities, Crude oil traded little changed near $79 a barrel in New York after equities advanced as sales of new U.S. homes rose more than forecast while analysts estimated that supplies of fuel products climbed last week. Gold, little changed, may gain on speculation that a drop in prices in July, the first monthly loss since March, is spurring some physical demand. Copper dropped from the highest level in more than 10 weeks, declining for the first day in seven sessions, as gains were seen overdone amid lingering concern that the global economic recovery may slow. The Indian markets taking cues from its global peers started off on a positive note but could not sustain their gains. The markets trade flat on a positive note and is witnessing lacklustre move ahead of the monetary policy due for the day. Capital Goods index is the main dragger for the day declining by one and half percentage points. Auto index which witnessed good selling pressure in yesterday’s trade is witnessing some buying interest to trade in green gaining more than one percentage points. Market breadth is positive with 1,329 advances against 1,111 declines. The Sensex trades in green at 18,026.30 gaining 6.25 points or 0.03 percentage points. Nifty trades at 5416.40 gaining by 2.20 points or 0.04 percentage points.

Source: Dalal Street Investment Journal

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