The record price in oil since the start of the commodity trading in 1983, has stoked inflation expectation in the country.

Government ministers are expected to meet sometimes next week to look at alternatives including price hike and a reduction in excise duty.

Crude oil prices reached an all-time high of $100 dollars a barrel on Wednesday in New York Mercantile Exchange, triggering fears of more losses for the utilities controlled by the government.

Of the BSE shares, TCS fell 2.9% to 1,018.35 rupees, Wipro shed 2.9% to 496.25 rupees, and Satyam Computers fell 2.52% to 425.50 rupees while Infosys Technologies closed weaker at 2% to 1,715.2 rupees.

Oil & Natural Gas Corporation rose 3.9% to 1,319.45 rupees. Cairn India jumped 4.8% to 254.95 rupees, Selan Exploration Technology was up 20% to 219.80 rupees, Asian Oilfield Services gained 5% to 385.7 rupees, Jindal Drilling & Industries advanced 2.5% to 1,521 rupees and Aban Offshore surged 0.5% to 5,100.15 rupees.

National Thermal Power Corporation with a rise of 6.8% to 274.7 rupees led the advancers in the Sensex index.

Reliance Energy added 6.1% to 2,513.4 rupees. Reliance Industries advanced 1.2% to 2,898 rupees, recovering from session''s low of 2831.1 rupees.

Hindustan Petroleum Corporation gained 6.8% to 399.7 rupees, Bharat Petroleum Corporation surged 4.3% to 538 rupees and Indian Oil Corporation jumped 1.1% to 780.4 rupees.


8:00AM New York, 8:00PM Hong Kong – Hong Kong stocks fell for the second time in a row. Gold producers limit loses as price steadies below the record $860 an ounce.

Stocks in Hong Kong fell for the second consecutive trading day of the year on fears that the weakening U.S. economic growth will widen credit market losses.

In Hong Kong trading Hang Seng Index declined 2.44% or 673.24 to 26,887.28, while the China Enterprises Index of Hong Kong-listed mainland companies fell 3.39% to 15,464.66.

The financial markets in Japan were closed today and will reopen for the first time in 2008 on Friday.

Daily turnover crossed HK$47.36 billion by mid-day against HK$43.88 billion in the previous session.

The U.S. Institute for Supply Management manufacturing index in December slipped to 47.7, the lowest since April 2003 suggesting that the manufacturing activities declined in the month. The report sparked a wide sell-off in U.S. trading and major indexes lost more than 1.5%.

Gold producers rose after the price rose to record highs at $860.10 an ounce yesterday. Zhaojin Mining increased 5.8%, Zijin Mining rose 1.5%, and Sino Gold climbed 9.3%.

Construction companies also added to yesterday’s gains on expectations solid economic growth will continue in China. China Communications Construction rose 2.3% and Sinoma spiked 5.9%.

Oil companies fell despite the 4.2% price increase to $100 per barrel in international markets. Sinopec fell almost 4%, PetroChina shed 1.9% and CNOOC slipped 0.76% percent.

PetroChina fell on reports of expected delays, by almost a year of a new 100,000 barrels-per-day refinery in China''s remote northwest, to late 2008 due to construction complications.

The Standard reported today that Singapore Airlines spokesman Stephen Forshaw says the company is not prepared to raise the offer price for a 24% stake in China Eastern Airline after shareholder China National Aviation Corp said on Tuesday the subscription price of HK$3.8 per share doesn’t reflect the fair value of the company.

Forshaw reportedly told newswires “it is the maximum justified on business fundamentals”, adding that Singapore Airlines was a long-term partner rather that a short term trader and China Eastern stands to benefit from the business alliance.

Separately, the Wall Street Journal Asia reported that CNAC will vote against the proposed acquisition by Singapore Airlines and its parent company Temasek Holdings at a shareholders meeting on January 8.