[R]09:45AM Wall Street opened higher on lower initial jobless claims and robust productiviry.[/R]

U.S. stocks bounced back into the positive territory at opening, boosted by a sharp drop in U.S. jobless claims and a stronger-than-forecast productivity report. Some better-than-expected retail sales reports also provided support. The Labor Department said initial claims for state unemployment benefits fell by 19,000 after five straight weeks of increases. Productivity in the U.S. nonfarm business sector was revised up to an annual rate of 2.6% in Q2 from 1.8% gain reported earlier.

Retailers were in focus Thursday, with most of them posting in-line or better-than-expected sales figures. Dow component Wal-Mart (WMT: chart) gained 1%, as it posted a stronger-than-forecast 3% sales rise for August. Ann Taylor Stores (ANN: chart) rose 4.5% after posting 2.9% same-store sales increase, beating the 1.9% sales decline projected by analysts.

On the side of the losers, Gap (GPS: chart) dropped 2.8% after it reported a better-than-expected 1% sales drop. Stein Mart (SMRT: chart) fell 2.6% after posting August same-store sales decline of 5.2%, worse than the 4% fall estimated by analysts. Limited Brands and J.C. Penney (JCP: chart) lost about 1% each on disappointing sales results.

In global economic news, the European Central Bank and the Bank of England both held rates unchanged. In addition, the ECB on Thursday injected another $57 billion into the banking system. The Dow Industrials were 10.9 points higher at 13,316.4. The S&P 500 rose 0.3 points at 1,472.6, while the Nasdaq gained 1.1 points at 2,607.05.


[R]9:30AM New York, 7:00PM Mumbai – Deal making and expectations of strong industrial activities in the current quarter lifted the index.[/R]

Sensex in Mumbai trading closed up 170.16 or 1.1% to 15,616.31. CNX Nifty closed up 42.75 or 0.96% to 4,518.60.

Of the stocks traded on Bombay Stock Exchange, 1,698 closed higher 1,050 declined, and 74 were unchanged. The daily turnover on the exchanges was 4,646 crore rupees compared to 5,167 rupees in the previous session. The turnover on the National Stock Exchange declined to 9,937 crore rupees from 10,939 crore rupees a day ago.

The broad rally in the market was evident in oil and gas, consumer durables, auto, and banking stocks. Of the 30 stocks in the Sensex, 27 closed higher and 3 declined.

State Bank of India increased 2.6% to 1,635 rupees. The bank plans to raise 1,500 crore rupees in a bond issues.

Cement stocks led the rally. Birla Corporation jumped 3.6% to 317 rupees followed by 1.7% rise in ACC to 1,101 rupees, 1.6% gain in Ambuja Cement to 140 rupees, and 4% in India Cements to 274 rupees.

A day after Maruti warned that sales growth may be lower in the rest of the year, investors bid up auto stocks. Maruti Suzuki jumped 0.6% to 878 rupees followed by increases in Tata Motors of 2.1% to 712 rupees, Hero Honda Motors of 2.7% to 652 rupees and Bajaj Auto of 1.5% to 2,340 rupees.

Hindustan Unilever jumped 1.9% to 216 rupees on the news that its Assam personal care products plant has ended seven week long strike. The normal operations are expected beginning next week.

Welspun Gujarat lost 5.8% to 241 rupees and Raymond declined 0.6% to 273 rupees. Raymond is planning to launch women apparel group with a retail chain of 175 stores.

Saregma India soared 10% for the second day to 260 rupees. Yesterday Sonanta Investments purchased 10.6 lakhs or 1.06 million shares. Networth Stock Broking increased 5% for the second day after the company said that it is negotiating with several investors but failed to name them. Traders suggested Hiduja Group is likely to buy a stake in the company.

Hindustan Zinc added 3% to 724 rupees after the company lowered zinc price by 3.7% to 139,200 rupees to a ton and lead price was lowered by 6% to 139,100 rupees to a ton.

Hindoostan Spinning & Weaving Mills added 5% for the second day in a row after the news that the company has sold 8 acre land in Mumbai for 350 crore rupees to Akruti Nirman.


[R]09:00AM U.S. stock futures indicated a lower opening ahead of economic data.[/R]