11:30AM Market turned higher on weaker oil.
The U.S. stock markets rebounded from earlier weakness as a continued decrease by the oil price generated some positive sentiment. Crude oil futures dropped by another $2 to $59 a barrel, giving a boost to oil-sensitive airline stocks and retailer companies, too. At the same time oil giants like Exxon Mobil Corp. (XOM: chart) and Chevron Corp. (CVX: chart) dropped 1.6% and 1.6% respectively. ConocoPhillips (COP: chart) fell nearly 3% after the company said it expects production for the third quarter to come in about 5% lower than the previous quarter. The company also said it expects worldwide refining margins to be significantly lower than Q2 levels. Semiconductors fell, hurt by a lowered sales outlook from Marvell Technology Group (MRVL: chart) which dropped 14%. Internet, networkers, biotech and gold stocks also moved to the downside.

Among stocks in focus, Pepsi Bottling Group (PEP: chart), the largest bottler of PepsiCo Inc. drinks, tumbled 5.8% after the company reported Q3 earnings growth of $207 million, or 86 cents a share, up from $205 million, or 82 cents a year ago. The per-share results include a 4-cent cost of stock-based compensation and a 5-cent gain from income-tax law changes. In morning trading, the Dow Jones industrial average was up 5.76, or 0.05%, at 11,676.11. The Standard & Poor's 500 index was down 2.36, or 0.18%, at 1,328.96, and the Nasdaq composite index fell 7.47, or 0.33%, to 2,230.13. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.60% from 4.61% late Monday.


10:30AM The Sensex dips in a dull session, dragged down by selling pressure.
The Sensex on BSE finished 88.03 points, or 0.71% lower, to close at 12,366.39. The market-breadth, was positive, but had retreated as profit-taking seized smallcap and midcap stocks. For 1,407 shares that advanced, 1,047 declined and 65 remained unchanged. The turnover on BSE was to Rs 3,079 crore, lower than Friday’s Rs 3,705.68 crore. The turnover on NSE was Rs 5,990.72 crore. From the Sensex stocks, 21 declined while the rest advanced.

Indiabulls Fiancial Services Ltd. Has sold 4.5% to Dubai based and New Zealand brothers owned Sovereign Global Investment Ltd. The Dubai based fund will pay Rs. 302 crores or $66 million. The company share has risen 22-fold since its listing in Sept 2004.

Most active

Mahindra Gesco was the most active stock on BSE, with a turnover of Rs 81.89 crore followed by Tata Steel (Rs 73.51 crore) and Reliance Capital (Rs 72.66 crore).

Advancers

NTPC led the advancers, gaining 2.27% to Rs 133.15. Bajaj Auto rose 0.91% to Rs 3,025.50, Reliance Energy rose 0.61% to Rs 486.50, Tata Motors jumped up 0.57% to Rs 867 and Hindalco gained 0.29% to 171.85. Auto stocks gained on better than expected monthly sales.

Shares of TVS Motor Company rose 1.65%, to Rs 126.50, after it said on Tuesday its September two-wheeler sales advanced to 1,62,200 units from 1,21,108 units a year ago, an increase of 34%. Mahindra & Mahindra gained 0.81%, to Rs 686, after it said on Tuesday its vehicle sales rose 15%.

Metals gained on fresh buying in expectation of prices staying firm. Sesa Goa advanced 8.88% to Rs 1,059, Jindal Stainless gained 3.13% to Rs 111.90, Jindal Saw added 1.56% to Rs 325, Sterlite Industries rose 2% to Rs 445.35, Bhusan Steel surged 10% to Rs 303.60 and Shree Precoated Steel soaredup 10% to Rs 200.20.

Petron Engineering Construction added 5% to Rs 144.15, after securing a letter of intent from Madras Cements for a contract worth Rs 12.43 crore. Hindustan Zinc rose 1.58%, to Rs 603, after the company increased zinc price by Rs 2,000 per tonne, and lead price by Rs 1,100 per tonne.

Decliners

HDFC (down 3.73% to Rs 1,477), HLL (down 2.81% to Rs 249) and Cipla (down 2.33% to Rs 256.15) led the decliners. Index heavy Reliance Industres sagged 0.88%, to Rs 1,160.70, on 5.16 lakh shares. It traded in a range of Rs 1,188 and Rs 1,160.

Maruti Udyog shed 1.20% to Rs 969.45, on 3.47 lakh shares following its statement on Tuesday, that it had sold 59,420 vehicles in September, up 20.6% from 49,278 units in the same month last year. Tata Steel slipped 0.41% to Rs 533.45 after surging to a high of Rs 542.50.

IT stocks were hit by selling pressure. Infosys (down 1.51% to Rs 1,820), TCS (down 1.04% to Rs 1,011) and Wipro (down 1.30% to Rs 518.25) led the decliners in the sector. Bank declined as well. Kotak Mahindra, Karnataka Bank, Oriental Bank, Union Bank and IOB closed lower. Pharma stocks also dipped. Glenmark, Ranbaxy Labs, Pfizer, Sterling Bio and Cipla ended down.

Other news

The publishers of Hindustan Times and The Times of India have signed an agreement to jointly publish a new newspaper in New Delhi and set up a joint venture corporation.

The Tata Group today said its technical alliance with Australian retail company Woolworths to start a specialised retail chain for consumer durables. The new venture, Infiniti Retail Limited, will be a 100% subsidiary of Tata Sons, and will offer more than 6,000 products across eight categories.

Maruti Udyog, largest car maker, reported doemstic sales rise of 22% in Septemeber to 56,606 units from a year ago. Sales rose 14.6% compared to sales in August 2006. The export in September rose to 2,814.