Markets Open Higher After Yesterday's Lull - Market COmmentary
The Global Markets give out mixed cues this morning. U.S. stocks rose for the seventh time in nine days as retailers rallied on faster than-estimated sales growth, helping the market recover from an early slump triggered by concern over Greece’s debt crisis. European stocks declined the most in six weeks as speculation Greece may default on its debt fuelled concern about the strength of the economic recovery. This morning most Asian stocks fell, led by Japanese and South Korean exporters, as Goldman Sachs Group Inc. downgraded Canon Inc. and the won strengthened. Mining companies and retailers gained. In commodities Crude oil rose for the first time in three days as concerns over a Greek default subsided and better- than-estimated retail sales in the U.S. bolstered optimism of a global economic recovery and increased fuel demand. Gold fluctuated between gains and losses in New York, halting a five-session rally after touching a 12-week high, on speculation that a rising dollar will curb demand for the metal. Copper rose for the first time in three days after the dollar fell against the euro, improving the appeal of commodities as alternative investments. The metal is poised for a third straight weekly gain. The Indian Markets started the day on a flat note but gained as the day progressed. All the sectoral and broader indices trade in green this morning. The Consumer Durables, Oil & Gas and Capital goods indices were the main contributors towards the gains as all the three ore than one percentage points higher. Market breadth is positive with 1,777 advances against 632 declines. The Sensex trades in red at 17,869.45 gaining 155.05 points or 0.88 percentage points. Nifty trades at 5336.80 gaining 32.35 points or 0.61 percentage points. The markets are likely to remain volatile and take cues from the forthcoming fourth quarter results.
Source: Dalal Street Investment Journal
