11:30AM Blue-chip stocks declined, while tech shares advanced.
Stocks reversed from earlier gains, as weaker-than-expected consumer sentiment data and higher oil prices limited the advance generated by Cisco profit, a narrowing trade deficit and lower import prices. Gold stocks rallied along with the price of the precious metal. Computer hardware and oil services stocks also moved to the upside.

With technology stocks benefiting from better-than-expected quarterly results from Cisco (CSCO: chart), the tech-heavy Nasdaq advanced in morning trading on Thursday. Cisco boosted networking stocks, rising 7% on 28% profit jump. At the same time, losses by Merck (MRK: chart) and Pfizer (PFE: chart) helped to drag the Dow lower. The stocks turned in two of the pharmaceutical sector's worst performances, falling 2.3% and 1.8% respectively. However, Dow component Hewlett-Packard (HPQ: chart) rose 1.5% after Goldman Sachs raised earnings estimates and the price target for the stock. Gold stocks rallied along with the price of the precious metal. Computer hardware and oil services stocks also moved to the upside.

Media giant Viacom (VIA: chart) dropped 2.1% as the company reported a 16% decline in Q3 earnings, but the results topped analyst forecasts. In late morning of trading, the Dow Jones industrial average fell 17.12, or 0.14%, to 12,159.42. The Standard & Poor's 500 index rose 1.04, or 0.09%, at 1,386.92, while the Nasdaq composite index added 14.95, or 0.63%, to 2,399.86. Bonds were mostly flat, with the yield on the benchmark 10-year Treasury note at 4.63% from 4.64% late Wednesday.


AM 10:30 The Sensex goes back to winning ways after two days of losses.
The Sensex on BSE finished 64.98 points, or 0.5%, higher to end at 13,137.49. The Sensex traded in a range of 123.04 points. The market-breadth was strong. As 1,473 shares advanced on BSE, 1,033 declined and 88 stocks were unchanged. For every 4 advancers there were 3 decliners. From the Sensex stocks, 17 advanced, while the rest declined. The turnover on BSE was Rs 4,088 crore, lower than Rs 4,305 crore on Wednesday. The turnover on NSE was Rs 7,837.47 crore, lower than Rs 8,572.66 crore on Wednesday.

Economic news

The Union Cabinet on Thursday discussed lifting a ban on sugar exports but did not set a date for such a move, a cabinet minister announced.

The Reserve Bank of India has announced that resident individuals would be allowed to remit up to $50,000 per financial year (increased from $25,000) for any current or capital account transactions or a combination of both.

Advancers

Satyam Computer advanced 3% to Rs 428 to lead the gainers, on reports that it has won a $71 million order for 7 years, from Qantas Airways of Australia.

ICICI Bank rose 1.4% to Rs 794.90. The stock struck an all-time high of Rs 804 in late-trading. ICICI Bank expects interest rates to remain steady. HDFC Bank ended 1.4% higher to Rs 1,017.

Tata Steel gained 2% to Rs 504. Some of the major shareholders of Corus Group have sold their shares in the company, raising doubts about a counter offensive to the $8 billion bid of Tata Steel for the Anglo-Dutch steel maker.

Software large-cap Infosys rose 0.8% to Rs 2,144. The stock gained for the third day in a row today, after shareholders approved a sponsored ADR issue, on Tuesday.

Index heavy Reliance Industries advanced 0.6% to Rs 1,260. Mahindra & Mahindra gained 6.6% to Rs 832 after Renault said on Thursday it was expanding its existing joint venture with Mahindra & Mahindra to manufacture more models for the Indian market.

Recently listed Development Credit Bank jumped 5% to Rs 51.10. Other companies which advanced included Indo Tech Transformers, jumping nearly 14% to Rs 218.55. Petron Engineering Construction gained 5% to Rs 177.10.

Glenmark Pharma surged nearly 6% to Rs 460. Financial Technologies jumped 7% to Rs 1,924.85. Infrastructure Development Finance Company gained nearly 5% to Rs 79.05. Bank of India and Union Bank of India have joined efforts with Infrastructure Development Finance Company for loan syndication.

Decliners

Car large-cap Maruti Udyog led the decliners falling nearly 3% to Rs 909.80 following reports that Nissan Motor Company has terminated talks with Japanese compact car maker Suzuki Motor Corp, for a project in which Suzuki was to build a Nissan model in India for sale in the local market.

Hindalco Industries plunged 3% to Rs 182.20, after the RBI said that foreign investors will not be allowed to buy shares in the firm without its permission, as foreign investment had touched the 22% limit.