12:30PM European markets closed steeply down.
European markets closed Friday trading session deeply in the red, tracking Wall Street losses amid worries of U.S. economic slowdown. The stock markets drop was mainly contributed by exporter-related stocks exposed to the U.S. growth cycle. Software maker SAP and chip maker Infineon Technologies fell 2% each. Crude oil advanced, exerting pressure over airlines like British Airways, down 2% and automakers such as Volkswagen, down 2.1%. Elsewhere, shares of Dutch telecom KPN dipped 2.3% after the company said the government would sell its remaining 167 million-share stake. The move leaves KPN free of government interference to decide its own future. The German DAX 30, the French CAC 40, and London FTSE 100 slipped 1.3% each.

Oil prices retreated amid concerns of slowing economic growth, ample supplies and weaker demand. Light sweet crude November delivery dropped 59 cents to $61. London Brent November contract lost 64 cents to $60.70. Natural gas futures fell 3.6 cents to $4.745 per 1,000 cubic feet. The U.S. dollar further declined versus major currencies. The euro traded at $1.2820, up from $1.2766. The dollar bought 116.31 yen, down from 116.61. The British pound stood at $1.9028, up from $1.8990. European gold advanced. In London the precious metal traded at $586, up from $578.60 per ounce. In Zurich gold traded at $585.25, up from $580.10. Silver closed at $11.13, up from $10.97.


11:30AM The Nasdaq moved steeply down on weak tech stocks.
Concerns that slowing economic growth would hurt corporate profits kept stocks in the negative territory Friday morning. The Nasdaq posted a steep decline reflecting significant weakness among technology stocks, with networking and disk drive stocks moving notably lower. Weakness in the biotech sector also contributed to the weakness of the tech-heavy index. Energy stocks turned lower reversing from earlier gains, as the price of oil pulled back. Meanwhile, the gold sector continued to buck the downtrend by the broader market.

Shares of Dow component General Motors (GM) fell nearly 2% on reports that an alliance with Renault and Nissan Motor seemed less likely after three months of negotiations. Among gaining stocks, Texas Instruments (TXN) rose 1.8% after its board approved a plan to buyback an additional $5 billion of its stock. Halliburton Co. (HAL) gained nearly 1% after the company boosted its share-repurchase program by $2 billion. In late morning trading, the Dow was down 32.82, or 0.28%.The Standard & Poor''s 500 index was down 5.28, or 0.40% and the Nasdaq composite index fell 21.13, or 0.94%. Bonds jumped sharply, with the yield on the benchmark 10-year Treasury note falling to 4.60% from 4.64% late Thursday.


10:30AM The Sensex declines Friday on profit-taking, Reliance jumps.
The Sensex on BSE finished 37.49 points lower, or 0.31%, at 12,236.78. The market-breadth was weak and narrow and small and mid caps did not take part in the rally of the past two sessions. For 1,596 shares that declined, 910 advanced and 63 stocks remained unchanged. From the Sensex stocks 20 declined while the rest advanced. The turnover on BSE was Rs 3,121 crore, lower than Thursday’s Rs 3,454 crore. The turnover on NSE was Rs 6,435.98 crore.

Most active stocks

Index heavy Reliance Industries was was the most-active stock on BSE, with a turnover of Rs 226.64 crore followed by Indiabulls (Rs 138.50 crore) and Voltamp Transformers (Rs 107.88 crore).

In focus

Reliance Industries spurted 1.54%, to Rs 1,155.80, on a volume of 19.72 lakh shares on reports that it had paid Rs 425 crore as advanced tax, in the second installment this year, compared to Rs 225 crore last year.

Advancers

Grasim Industries led the advancers, rising 1.90% to Rs 2,518, Reliance Communications was up 1.59% to Rs 349 and Gujarat Ambuja Cements gained 1.38% to Rs 117.55. Bharti Airtel moved up 1.17% to Rs 471 after it secured a licence for GSM-based wireless services in Channel Islands, in Europe. A block deal of 22.3 lakh shares was traded on BSE.

Jet Airways gained 1.72%, to Rs 652, as the Bombay High Court ordered the release of Rs 1,500 crore deposited by Jet Airways in an escrow account, for acquiring Air Sahara. Paper maker Rama Newsprint and Papers jumped 20% for the third straight day, to Rs 16, after the stock was re-listed on BSE.

Decliners

Software exporters experienced profit-taking throughout the day. Satyam Computer led the decliners, down 2.65%, to Rs 836.90 on a volume of 7.89 lakh shares. Infosys lost 0.48% to Rs 1,826, Wipro declined 0.80% to Rs 519 and TCS moved lower 1.30% to Rs 1,039.
Power equipment manufacturer BHEL sagged 0.10%, to Rs 2,311.50, in spite of reports that it may acquire an IT company, to enhance capacity and technological expertise.

Consumer products companies were under selling pressure. Hindustan Lever was down 0.62% to Rs 257, ITC lost 1.70% to Rs 187.40, Nestle sank 1.1% to Rs 1,024, Dabur India shed 1.80% to Rs 136.80, Colgate dipped 1.20% to Rs 369 and Britannia slipped 1.86% to Rs 1,100.

JB Chemicals & Pharmaceuticals lost 2.10% to Rs 97.85 and apparel maker Raymond’s slipped 2.10%, to Rs 436. Tata Motors sank 1.76% to Rs 833.30, after it announced that a fire at its paint shop in Pune may disrupt production for about a week.

Other News

The High Court in the communist-ruled southern Indian state of Kerala overturned a ban Friday on the production and sale of Coca-Cola and Pepsi in the state. The bans were put in place after a New Delhi-based private research group alleged the soft drinks had high levels of pesticides.