Federated Department Stores (FD: chart) posted same-store sales decline of 2.2%, missing its forecast for an increase of 2.5% to 4%. Analysts had been expecting a rise of 1.7%. Total sales dropped 2.1% to $1.84 billion.


8:00AM NY-7:00PM Mumbai Sensex ends lower on late sell-off in large-caps.

The Sensex] on BSE finished 10.28 points, or 0.07%, lower at 13,771.23. The market-breadth ended slightly negative as 1,238 stocks advanced, while 1,328 stocks declined and 68 stocks remained unchanged. Of the 30 stocks in the Sensex, 14 advanced, while the rest declined. The turnover on NSE was Rs 9,225.37 crore, compared with Rs 8,394.44 crore on Wednesday.

Economic news

Assembly poll results in Uttar Pradesh are due tomorrow. Polling for the seventh and final phase got over on Tuesday, May 8th. The UP vote is seen as a barometer of national political trends and had some influence on trading today.

Passenger car sales in the domestic market during April increased 11.26% while motorcycle sales were down, reporting a decline of 9.68%. According to figures posted by the Society of Indian Automobile Manufacturers, domestic passenger car sales during April stood at 82,934 units compared to 74,542 units in the same period last year. Motorcycle sales during the month, however, stood at 4,63,091 units as against 5,12,695 units in April 2006.

The Telecom Regulatory Authority of India may impose a revenue-sharing or an entry fee on internet service providers. Currently, internet service providers pay virtually no licence fee, unless they offer virtual private network services. Trai''''s suggestions, if accepted, could raise the cost of internet and broadband services in the country. TRAI will lower the Foreign Direct Investment requirement from 100% to 74% as the requirement is for telephone service.

Trading highlights

Indiabulls Real Estate was the most-active stocks with a turnover of Rs 190 crore followed by Page Industries and Tata Steel.

Advancers

HDFC led the gainers today, soaring 5.3% to Rs 1,680. Tata Steel surged 2.5% to Rs 576. The stock traded lower from the session high of Rs 584.70. Tata Steel is to report strong numbers when it unveils its fiscal 2007 results on May 17 2007 on higher steel prices.

HDFC Bank and ITC rallied 1.7% each to Rs 1,014 and Rs 163, respectively. Bajaj Auto and Hindalco gained around 1.5% each to Rs 2,604 and Rs 146, respectively. Hero Honda also finished 0.5% higher at Rs 705.

Decliners

Oil exploration large-cap ONGC led decliners, losing 2.2% to Rs 889, in contrast to an early 2.2% increase in the stock to Rs 929.70 that was sparked by reports the government had decided to cut the subsidy share of upstream companies by nearly Rs 5,000 crore.

NTPC slipped over 2% to Rs 151 and Ranbaxy dropped 1.8% to Rs 386. Tata Motors and Larsen & Toubro declined around 1% each at Rs 714 and Rs 1,691, respectively. Index heavy Reliance Industries was down around 1% at Rs 1,581.

Auto maker Maruti Udyog declined 1% to Rs 795. The stock had advanced 1.1% to Rs 835 in early trade. The Group of Ministers will probably finish today the selling of the government 10.27% stake in the car maker. The stake is to be sold to banks, mutual funds, and financial institutions.


6:30AM European markets were little changed Thursday ahead of important rate decisions.

The U.K. FTSE 100 index edged down 0.1% at 6,545.80, the German DAX Xetra 30 index was up 0.1% at 7,483.90 and the French CAC-40 index traded 0.1% lower at 6,045.08. National benchmarks decreased in all of the 17 western European markets that were open except Denmark, Greece and Luxembourg.