1:00PM European markets closed lower amid weak U.S. dollar.
European stock markets finished in the negative territory Thursday, pressured by weak U.S. manufacturing data which added to the continuous weakness of the dollar. The euro hit a 20-month high of $1.3274, while the pound reached a 14-year peak of $1.9694. The weaker U.S. currency hurt exporter issues like automakers and technology stocks. Car maker Volkswagen slipped 23.8%, while electronics conglomerate Philips Electronics lost 0.89%. However, resource stocks posted gains, helping to limit losses. Oil major BHP Billiton and mining company Xstrata, both dropped 1%. Consumer-oriented stocks were also in the spotlight, with home improvement retailer Kingfisher which lost 2.1% on weaker sales, and Danone Group, falling 1.9% after recent strength. The French CAC 40 led decliners, falling 1%, followed by the German DAX 30, down 0.9%, and London FTSE 100, down 0.6%.


11:30AM Contraction in Midwest business activity dragged stocks down.
U.S. stocks declined as an unexpected contraction in Midwest business activity raised concerns about the outlook for corporate profits. The Chicago purchasing managers'' index fell to 49.9 in November from 53.5 in October, below expectations of increase to 55.0. Wal-Mart Stores Inc.''s forecast for little improvement in December sales added to the downward trend. Wal-Mart (WMT: chart) was the biggest drag on the S&P 500 and the Dow as the retailer dropped 1.6% after forecasting flat to 1% higher December same-store sales. Further weakness to the retail sector was provided by shares of J.C. Penney Co. Inc. (JCP: chart) which dropped 3.7% after the retailer said November same-store sales rose a less-than-expected 1.4%. Teen clothing retailer Abercrombie & Fitch Co. (ANF: chart) fell 4.2% after posting a 3% decline in November same-store sales rather than a 3% increase.

Shares of defense stocks moved lower. Dow component Boeing Co. (BA: chart) dropped 1.4% to $87.65, while chemical maker DuPont Co. (DP: chart) slipped 1.9% to $47. The downside movement was limited by gains for energy and gold shares which benefited from a considerable rise by crude oil and gold prices, respectively. Exxon (XOM: chart) shares rose 0.9% at $76.64 on the NYSE. Housing stocks also posted strong gains after Banc of America upgraded its rating on the sector to neutral from underweight. In corporate news, Pfizer (PFE: chart) rose 2% after it raised its full-year profit outlook and said its development pipeline would produce a number of late stage products in the coming years. The Dow Jones industrial average was down 50.55 points, or 0.41%, at 12,176.18. The Standard & Poor''s 500 Index was down 5.54 points, or 0.40%, at 1,393.94. The Nasdaq Composite Index was down 12.66 points, or 0.52%, at 2,419.57.


10:30AM The Sensex advances in volatile trading boosted by domestic growth.
The Sensex on BSE finished 79.58 points, or 0.58%, higher at 13,696.31. The market-breadth was negative. For 1,341 shares that declined on BSE, 1,217 advanced and 58 shares were unchanged. From the Sensex 30 stocks, 18 advanced while the rest declined. The turnover on BSE was Rs 3,954 crore, lower than Rs 4,409 crore on Wednesday. The turnover on NSE was Rs 12,725.13 crore, much higher than Rs 8,083.89 crore on Wednesday.

Economic news

The economic growth of India unexpectedly accelerated to 9.2% last quarter, driven by government and consumer spending that may force the central bank to raise interest rates to curb inflation. The expansion reported by the Central Statistical Organisation in New Delhi today was more than the 8.9% predicted by economists for the three months ended Sept. 30 from a year earlier.

Most Active

Recent IPO Parsvnath was the most active stock with a turnover of Rs 865 crore followed by Action Construction, Info Edge, Lanco Infrastructure and Indiabulls.

Advancers

Private sector banking large-cap HDFC Bank led the gainers, up 3.21% to Rs 1,122, on a volume of 71,305 shares. ICICI Bank was up 1.53% to Rs 870, State Bank of India advanced 1% to Rs 1314, Karnataka Bank gained 3.89% to Rs 129.50, UTI Bank added 0.83% to Rs 475 and Kotak Mahindra Bank edged up 1.86% to Rs 380.

IT shares were in focus. Satyam Computers gained 0.73% to Rs 455, Wipro jumped 1.70% to Rs 593 and Infosys added 0.51% to Rs 2,168.20. The ADRs of the three software export leaders, Infosys, Satyam and Wipro, rose between 0.5% and 1.8% on Wednesday.

Software large-cap TCS surged 2.11% to Rs 1,189, after signing a 7-year deal worth $65 million for reorganising IT services of Somerfield. Somerfield is a leading UK-based, small-format food retailer.

Dr Reddy’s Lab advanced 2.91% to Rs 756, as ICICI Securities reiterated a buy on the stock, fairly valuing it at Rs 997.

Among non-Sensex stocks, Raipur Alloys & Steel jumped 20% to Rs 122.70, as Reliance Mutual Fund acquired 12.5 lakh shares at Rs 100.47 per share, vide block deals, on Wednesday. Gujarat Apollo Equipments surged 8.03% to Rs 197.10, as the company deferred the rights issue indefinitely on Tuesday.

Decliners

Tata Steel led the decliners, down 1.99% to Rs 467.50, as 4.36 lakh shares changed hands on BSE. Index heavy Reliance Industries lost 0.24% to Rs 1,246.10, on a volume of 4.84 lakh shares. Hindalco and Gujarat Ambuja declined 1.5% each to Rs 173 and Rs 144, respectively.

Oil & refinery stocks declined after the government announced a reduction in retail prices of diesel and petrol by Re 1 and Rs 2, respectively, on Wednesday. Indian Oil Corporation shed 3.74% to Rs 446, Hindustan Petroleum Corporation lost 2.72% to Rs 284 and Bharat Petroleum Corporation was off 2.88% to Rs 344.

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