12:30PM European shares closed mostly higher.
European markets finished Friday session in the positive territory, led by telecommunication and automotive shares. However, weakness among energy stocks, as well as a flat opening on Wall Street helped offset gains. A decline in oil prices lent support to automakers like BMW, up 1.2% but weighed on oil companies at the same time, with BP falling 0.9% and Cairn energy losing 1.5%. Notable advancers in the telecommunication sector were France Telecom, up 0.7% and BT Group, higher by 1.7%. The German DAX 30 topped the 6,000 level for a second day in a row, closing up 0.3%. The French CAC 40 ended flat at 5,250. London FTSE 100 advanced 0.2%, with airlines in the spotlight. Ryanair Holding shares rose 1.5% after the low-cost airline lifted its fiscal-year profit guidance, while British Airways shares closed down 1.7% after reporting its pension deficit grew to 2.1 billion pounds.

Oil prices declined Friday, following the volatile trading fashion of the last several days. Light sweet crude November delivery lost $1.22 to $61.54. London Brent November contract slipped 60 cents to $61.94. Gasoline fell 2 cents to $1.474 a gallon, while heating oil fell 3 cents at $1.6862. Natural gas futures rose 10 cents to $5.49 per 1,000 cubic feet. The U.S. dollar extended strength versus major currencies. The euro traded at $1.2664, down from $1.2706. The dollar bought 118.13 yen, up from 117.79. The British pound stood at $1.8657, down from $1.8768. European gold prices dropped. In London the precious metal traded at $595.70, down from $604.40 per ounce. In Zurich gold traded at $594.75, down from $603.75. Silver closed at $11.20, down from $11.60.


11:30AM Market traded in a lackluster manner.
The three major averages were unable to sustain any significant moves and spent the morning session moving back and forth across the unchanged line.

In early trading, the Dow crossed its all-time closing high of 11,722.98, but it moved back to the downside shortly afterward. Losses by DuPont (DD) and Exxon Mobil (XOM) helped offset gains for the blue chip index.

Among the biggest Friday’s gainers, Research in Motion (RIMM) surged 19% after reporting strong quarterly results as well as an upbeat forecast. The company also said it may have to restate financial results because of improperly handled stock option grants to top executives. Corel Corp.(CREL) jumped 17% after it said it swung to Q3 net profit of $5.49 million, or 22 cents a share on higher gross margin and revenue. USA Truck Inc. (USAK) shares rallied 17% after Liberate Technologies offered to acquire the company for $21 per share. Wolverine World Wide (WWW) rose 4% after it was upgraded at Prudential Equity Group. The firm also lifted its price target on the stock to $31 from $26.

In late morning trading, the Dow Jones industrial average fell 6.08, or 0.05%, to 11,712.37. The Standard & Poor''s 500 index fell 1.33, or 0.10% to 1,337.82, and the Nasdaq composite index rose 0.13, or 0.01% to 2,270.15. Bonds were lower, with the yield on the 10-year Treasury note at 4.64%, up from 4.61% Thursday.


10:30AM The Sensex gained for the fourth straight day in a steady trading.
The Sensex on BSE advanced 73.68 points, or 0.60%, to close at 12,454.42. It had traded near 12,485 earlier in the day. The market-breadth was positive, as buying intensified in the small-cap and mid-cap stocks. For 1,599 shares advancing, only 899 declined and 70 shares were unchanged. From the Sensex stocks 23 advanced, while the rest declined. The turnover on BSE was Rs 3,705.68 crore, higher than Rs 3,578.65 crore on Thursday. The turnover on NSE was Rs 7,110.51 crore.

The finance minister P Chidambaram stated that there was liquidity in the banking system and that steps will be taken - fiscal and monetary - to keep inflation below 4%. He, however, predicts some pressure on food prices.

India’s GDP grew 8.9% in the April-June 2006 quarter from a year earlier, byoued by manufacturing and services output.

Advancers

Maruti Udyog led the advancers, up 3.78%, to Rs 978 on 6.62 lakh shares. Tata Steel (up 3.29% to Rs 536), Bajaj Auto (up 3.06% to Rs 3,015) and Reliance Communications (up 2.22% to Rs 347.55) were the other advancers.

NTPC rose 2.16%, to Rs 130.35, on 8.14 lakh shares. NTPC has announced that a 210 Mw unit, stage 3 in Uttar Pradesh, has been successfully commissioned.

Index heavyReliance Industries gained 0.24%, to Rs 1,170.80, on 7.83 lakh shares. It had soared to a high of Rs 1,178. the company announced it will reduce its retail pump prices of petrol and diesel from midnight on Saturday.

Metal stocks were in focus, after staying flat in the past couple of sessions, on reports that producers are considering a hike in steel prices. SAIL (up 3.72% to Rs 78.10), Rathi Udyog (up 20%, to Rs 31.70), Essar Steel (up 6.17% to Rs 36.15), Visa Steel (up 15.30% to Rs 36.55), Ispat Industries (up 4.8%, to Rs 11.60) and JSW Steel (up 1.55%, to Rs 285.25) gained.

Auto stocks surged on hopes of strong sales for September. TVS Motor (up 0.70% to Rs 124), Ashok Leyland (up 2.38% to Rs 45.15), Tata Motors (up 1.88% to Rs 858.30) and Mahindra & Mahindra (up 2.31% to Rs 683) advanced.

Decliners

Hero Honda (down 1.66% to Rs 776) and ICICI Bank (down 1.75% to Rs 696) led the decliners. ONGC was down 0.91% to Rs 1,169, Cipla fell 0.89% to Rs 261.65. Bharti Airtel fell 0.58% to Rs 468.35. A huge block deal in Bharti was traded on BSE at Rs 500 per share in afternoon trade.

Kotak Mahindra Bank Ltd slipped 1.9% to Rs 331.50 after its board approved a plan to spin-off trading and principal division of Kotak Mahindra Capital Co Ltd and merge it with the bank.