11:30AM Market averages traded lower on worries of faster economic growth.
U.S. stocks failed to continue the recent rally and kept trading in the negative, despite stronger-than-anticipated economic reports. On the one hand, the upbeat data provided support to the equities, but on the other, stoked concerns about faster-than-expected economic growth that could lead the Fed to stay on hold on rates in 2007. The Conference Board's index of consumer confidence climbed to 109 in December, reaching an 8-month high and countering expectations of a decline to 102. The National Association of Realtors reported existing home sales rose 0.6% in November, beating economist projections for a decline.

Financial companies were notable decliners, with Citigroup Inc. (C: chart) dragging banks lower on expectations that lower rates aren’t imminent. Lower interest rates are favorable as they boost the value of bonds owned by banks and insurers, and thus increase demand for mortgages and loans. Citigroup shares lost 1.5%. Apple Computer (AAPL: chart) weighed on technology shares with a 2% decline on reports that its CEO was given 7.5 million stock options in 2001 without board authorization. Elsewhere, shares of Siemens (SI: chart) added 1.1% after the electronics maker together with IBM (IBM: chart) won a $9 billion contract from the German military. In late morning trading, the Dow Jones industrial average fell 16.98, or 0.14%, to 12,493.59, retreating from its record close of 12,510.57. The Standard & Poor's 500 index fell 3.37, or 0.24%, to 1,423.47, and the Nasdaq composite index gave up 7.99, or 0.33%, to 2,423.23.


10:30 AM India slips on Thursday, as IT and capital goods decline.
The Sensex on BSE finished 13.35 points, or 0.10%, lower at 13,846.34. The market breadth was negative as 1,234 shares advanced on BSE, 1375 shares declined and 73 shares were unchanged. Of the thirty stocks in the Sensex index, 16 declined, while the rest advanced. The turnover on BSE was Rs 3,966 crore, higher than Rs 3,664 crore on Wednesday. The turnover on NSE was Rs 9,966.62 crore, as compared to Rs 7,083.45 crore on Wednesday.

Economic news
The Indian rupee hit a nine-month high on Thursday but gave up the gains. Robust exports, foreign investment in local companies through the stock exchanges and strong remittances from NRI community.

The Reserve Bank of India announced its study of budgets fiscal 2007 and has outlined a solid improvement in the fiscal policies helping to improve national deficit. In fiscal 2006 ratio of gross fiscal deficit to gross domestic product fell to 3.2% and ratio of revenue deficit to gross domestic product to 0.5%. The Reserve Bank accounts for this improvement on revenue collection improvement.

Chinese computer company, Lenovo, today announced its plans to expand into India. The company will launch its first innovation centre in the country to promote products in multi-branded and exclusive retail outlets.

In trade today
Tech Mahindra was the most-active stock with a turnover of Rs 319.20 crore followed by the stocks of Indiabulls and Reliance Industries. The mobile telephone company, Hutchinson Essar is looking for a premium valuation. The Chinese billionaire, Li Ka-shing controls 67% stake in the mobile phone company and is reported to expect valuation at eleven times sales. The fourth largest telecom company is generating app. Rs 400 per month per subscriber but is reported to seek a premium price of between 35% and 45% to the current mobile phone leaders Reliance and Bharti. Mr. Shing is expecting for his 67% stake a steep price of $21 billion.

Advancers
HDFC Bank led the advancers, up 2% to Rs 1,078 after its ADR advanced 3% to $73.89 on Wednesday on the NYSE. Hero Honda was another big gainer, jumping 1.83% to Rs 758, TCS rose 1.73% to Rs 1,216 and ITC added 1.47% to Rs 179.

Initial Public Offering of Ess Dee Aluminium jumped 11% at the opening to Rs 260 from the IPO price of Rs 225 per share and settled back at Rs 238. The stock was one of the most-traded on BSE. HCL Technologies advanced 2.21% to Rs 633.90, as a block deal of 5 lakh shares was traded on BSE at Rs 619 per share.

Indiabulls Financial Services gained 5.18% to Rs 673.95 as buying continued, a day before the last trading date for shareholder to purchase the shares of the real estate firm.
Hindustan Construction Company advanced 2.46% to Rs 148.10 after a statement from that company that it was awarded a national highways road project worth Rs 275 crore in Andhra Pradesh.

Bank of India rallied 5% to Rs 205.35 on hopes of improving profitability following several hikes in lending rates. Banks have raised lending rates for consumer and project financing to 13.5%.

Decliners
Cipla, generic pharmaceutical company, led the decliners, plunging 2.77% to Rs 252.35 on 1.43 lakh shares. SBI was also off 1.27% to Rs 1,235), Dr Reddy’s lost 1.13% to Rs 798.40 and Tata Steel declined 1.05% to Rs 476.25. Ratan Tata, Tata group chairman, said that there was a limit to how far Tata Steel can stretch to buy Anglo-Dutch steel-maker Corus Group without compromising the interests of shareholders.

Reliance Communications declined 0.41% to Rs 473. The company is in bidding war with Vodafone for Hutchison Essar, shares of which skyrocketed for the second straight day today, taking the Hong Kong stock market to a new peak above 20,000 points for the first time in its history.

Index heavy Reliance Industries shed 0.78% to Rs 1,282.80 on 13.19 lakh shares. Reliance intends to invest Rs 5,000 crore for gasification of lignite in south Gujarat. The project will be a joint venture between with Gujarat Mineral Development Corporation.


9:45AM Stocks opened little changed, awaiting key economic data.
Stocks opened little changed on cautiousness ahead of key economic data but pared losses following the release of stronger-than expected reports. December consumer confidence rose to 109.0 from an upwardly revised 105.3 in November, despite expectations of a decline to 102.0. November existing home sales rose 0.6% to a seasonally annual rate of 6.28 million units from an unrevised 6.24 million unit rate in October. Economists had expected a decrease to a 6.15 million unit rate.

On the corporate new front, Apple (APPL: chart) fell 1.6% amid reports that the company''s CEO Steve Jobs was given 7.5 million stock options in 2001 without the authorization of the company''s board. U.S. industrial goods manufacturer Eaton Corp. (ETN: chart) agreed on Thursday to buy AT Holdings Corp., the parent of Argo-Tech Corp., for $695 million, trying to expand its aerospace business. The deal is expected to close in Q1 of 2007.

In world news, Asian internet and phone companies may take at least two weeks to restore services, struggling to fix undersea cables damaged by earthquakes off Taiwan. Companies have been suffering from the loss of online services since Dec. 26 when a 7.1 magnitude quake struck southern Taiwan. In midmorning trading, the Dow Jones industrial average fell 18.74, or 0.15%, to 12,491.83, retreating from its record close of 12,510.57. The Standard & Poor''s 500 index fell 2.25, or 0.16%, to 1,424.59, and the Nasdaq composite index gave up 6.00, or 0.25%, to 2,425.22.