Reliance Industries dipped 3.6% to Rs 1,317. The company today called a board meeting on March 10 2007, to consider the payment of interim dividend for fiscal year 2007 - year ending 31 March 2007. The company has also set March 22 2007, as a record date for paying interim dividend. The announcement comes after the finance minister lifted dividend distribution tax to 15% from 12.5% in Union Budget 2007-08. Paying dividend before the end of this financial year will ensure that Reliance will pay the existing 12.5% tax on dividend distribution.

L&T led the decliners, off nearly 5% to Rs 1,464.6. Other decliners included power equipment company BHEL shedding 3.3% to Rs 2,099.6. Cigarette large-cap ITC lost 3.5% to Rs 167. The recent Budget did not bring cigarettes under value added tax regime as expected by the market but excise duty on cigarettes was increased by 5%.

Cement shares closed lower. Grasim lost 3.9% to Rs 2,070, ACC lost 2.4% to Rs 855 and Gujarat Ambuja Cements shed 1.1% to Rs 111. Telecom stocks, too, ended lower. Bharti Airtel lost 2.7% to Rs 707 and Reliance Communications shed 3% to Rs 415.30. M&M finished down 3.7% to Rs 775, although the company today launched the new Bolero, a sports utility vehicle.

Banking stocks bounced back in mid-day trade following lower inflation but the recovery was short-lived. State Bank of India plunged 4.2% to Rs 999, Oriental Bank of Commerce declined 1.9% to Rs 175.10 and Bank of India fell 1.3% to Rs 163.15. HDFC Bank dipped 3.4% to Rs 947.7.


6:30AM European markets were lower Friday on Adecco, Mediaset.
European markets were lower on Friday. Frankfurt Xetra Dax was 0.5% lower at 6,609.7 the CAC 40 in Paris fell 0.6% to 5,425.07 and London FTSE 100 slipped 0.2% to 6,102.

Advancers

Philips, the Dutch electronics group, led technology stocks higher. The company shed more than 8% over the previous three sessions after a trade dispute with Taiwan over recordable compact disc patents. The shares surged 2.5%.

UK supermarket Tesco gained 0.9% after investment group Berkshire Hathaway said it had taken a 2.9% stake. Air Liquide, the French industrial gases group, gained 1.7% after ING raised its price target following the group strong five-year outlook.

Decliners

Mediaset, the Italian broadcaster, fell 5.9% after downgrades from Deutsche Bank, Merrill Lynch, JPMorgan and Citigroup after reporting on Thursday that its 2006 net income profit fell on lower advertising revenues. Merrill Lynch lowered its rating to neutral.

Staffing company Adecco declined 4% after it posted revenue growth a bit below forecasts, with a 23% increase in Q4 net profit to 212 million euros largely due to a one-time tax benefit. Lagardere shed 5 % as investors corrected a 6.7 % rise in the previous session, on what was thought by dealers to have been an erroneous trade.

Oil and gold

Oil prices gained Friday on concerns about tightening gasoline supplies. Crude oil for April delivery rose 21 cents to $62.21 a barrel in electronic trading on the New York Mercantile Exchange by noon in Europe. Brent crude for April gained 37 cents to $62.48 a barrel on the ICE Futures exchange in London. Gold opened Friday at a bid price of $662.30 a troy ounce, down from $670.10 late Thursday.

Currencies

The euro lost a little more ground Friday against the dollar, which built on gains made as positive U.S. economic data helped calm traders in US. The euro bought $1.3164 in morning European trading, down from $1.3198 in New York late Thursday. The British pound fell to $1.9542 from $1.9605. The dollar edged up to 117.69 Japanese yen from 117.58 yen.