12:30PM European markets closed higher.
European markets finished higher as automakers and chemicals companies benefited from weaker oil prices. BMW and Volkswagen each rose more than 1%, and chemicals companies BASF and Akrema advanced 2%. Telecommunication stocks enjoyed a strong buying interest. Deutsche Telecom gained 2.3% on reports that private equity firm Blackstone wants the company''s CEO to step down. The travel sector also contributed to broad-market gains, with Carnival rising 5.6% due to a better-than-forecast 4% profit rise. In deal news, Serono closed 17.6% higher after German Merck agreed to buy the company for $13.3 billion. The German DAX 30 added 0.1%, the French CAC 40 advanced 0.3%, while London FTSE 100 rose 0.5%.

Oil prices hovered over $61 a barrel. Light sweet crude November delivery gained 37 cents to $61.10. Natural gas futures fell 3% to $4.78 per 1,000 cubic feet. The U.S. dollar extended losses versus major currencies. The euro traded at $1.2722, up from $1.2691. The dollar bought 116.78 yen, down from 117.46. The British pound stood at $1.8972, up from $1.8881. European gold was mixed. In London the precious metal traded at $579.20, up from $578.60 per ounce. In Zurich gold traded at $578.65, down from $580.10. Silver closed at $10.97, down from $11.10.


11:30AM Market averages turned flat as energy stocks offset losses in the drug sector..
U.S. stocks turned flat, reversing from earlier gains. Market was dragged down by drug store shares after Wal-Mart Stores announced it was slashing prices of generic drugs in Florida, but an advance by energy stocks helped offset losses. Following Wal-Mart’s (WMT: chart) decision to cut prices, shares of pharmacy chains such as Walgreen Co. (WAG: chart) and CVS Corp.(CVS: chart) dropped 4.4% and 8% respectively. Rite Aid Corp. (RAD: chart) fell 5.9%. At the same time, the energy sector moved higher as crude oil futures rose 1%, recovering from a six-month low on Wednesday. Exxon (XOM: chart) shares rose 1.6%, while Chevron Corp.(CVX: chart) and ConocoPhillips (COP: chart) added 2%. Boeing Co. (BA: chart), the top gainer on the Dow, rose 1% after winning a contract to improve security along the U.S. borders with Mexico and Canada.

In corporate news, Hewlett-Packard Co.(HPQ: chart), computer and printer maker, dragged down major averages on media reports that its CEO may have been more closely involved in a board-leak investigation than previously reported. Hewlett-Packard was the biggest drag on the Dow and the S&P 500, falling 3.6% to $35.44. HP said it will hold a news conference on the leak probe on Friday. In late morning trading, the Dow Jones industrial average rose 8.25, or 0.07%. The Standard & Poor''s 500 index rose 2.49, or 0.19% and the Nasdaq composite index rose 6.94, or 0.31% Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.71% from 4.73% late Wednesday.


10:30AM The Sensex ends in positive territory buoyed by higher taxe collection.
The Sensex on BSE finished 165.13 points, or 1.36% higher, to end at 12,274.27. The trading was in a range of 118 points during the day. The market-breadth was strong, the advancer oupaced decliner by 20%. For 1,379 shares that advanced, 1,141 declined and 75 were unchanged. From the Sensex stocks 25 advanced while the rest declined. The turnover on BSE was Rs 3,434 crore, higher than Wednesday’s Rs 3,418 crore. The turnover on NSE was Rs 7,132.33 crore.

Most active

Indiabulls Financial Services was the most-traded stock on BSE, with a turnover of Rs 185.44 crore. Voltamp Transformers was second with Rs 104.36 crore, Reliance Industries with Rs 90.42 crore and Bombay Dyeing with Rs 64.44 crore followed.

Advancers

Bajaj Auto led the advancers, by 3.96%, to Rs 2,904 on 61,295 shares because of another cut in global crude oil price. Maruti Udyog gained 1.60%, to Rs 943. Engineering company BHEL advanced 3.10%, to Rs 2,321, on a volume of 1.84 lakh shares. HDFC was up 2.57% to Rs 1,405 and TCS rose 2.77% to Rs 1,056.. Hidustan Lever surged 3.20% to Rs 258.10 on 6.34 lakh shares on reports that it had hiked prices of key products since July 2006.

ONGC advanced 2.15%, to Rs 1,198, after its foreign joint venture acquired Colombian oil assets of US-based Omimex Resources. Pharma stocks experienced renewed buying interest. Ranbaxy Laboratories gained 0.96% to Rs 416.20 after it received the U.S. government approval to manufacture and market Furosemide tablets. Dr Reddy’s Laboratories advanced 0.43% to Rs 757.10, after it was reported that the lab has lined up seven new chemical entities in its drug discovery fold.

Cipla advanced 1.48% to Rs 260 on 4.11 lakh shares. Index heavy Reliance Industries rose 0.55%, to Rs 1,133.50, on a volume of 12.99 lakh shares. It traded in a range between Rs 1,143.50 - Rs 1,127.15.

IT stocks were in demand. TCS was up 2.77% to Rs 1,056, Infosys Technologies gained 0.31% to Rs 1,830, Wipro notched up 0.75% to Rs 521.50, and Satyam Computers gained 2.03% to Rs 861.

Metal stocks advanced as metal prices firmed up. SAIL was up 0.95% to Rs 74.30, Tata Steel rose 1.10% to Rs 502, Kalyani Steel jumped 2.45% to Rs 278.25, Uttam Galva Steel advanced 4.60% to Rs 34.15., Hindalco moved up 1.61% to Rs 170.55 and Sterlite Industries gained 1.10% to Rs 438.10.

Decliners

Reliance Communications sank 0.82% to Rs 342.80, Hero Honda dipped 1.04% to Rs 764.50 and L&T lost 0.49% to Rs 2,683.50 led the decliners.

Other news

Reserve Bank of India issued a guideline and effectively raised interest rate on bank lending to promoters of Special Economic Zones. The Bank has perceived them as ‘riskier’ project and deemed tese projects equal to commercial projects. There are at least one hundred zones in various stages of development spread over ten states covering 27,000 hectare of land.

Essar Group has increased its holding in Essar Steel from 74.82% to 87.1%. In a similar move the group raised it holding in Essar Shipping to 76% and Essar Oil to 87%. Essar Global, the holding company is expected to consolidate its holding in preparation of international floation.