[R]1:00PM European markets closed notably higher, helped by auto and construction stocks.[/R]
European stocks finished notably higher, as strength posted by construction stocks Vinci and Saint Gobain, as well as solid gains for DaimlerChrysler helped lead a broad market rally. Vinci shares rose 6.4% after the investment vehicle of French billionaire Francois Pinault took a 5.1% stake in the company, prompting speculation of more stake buying to come. Saint Gobain shares rose 3.7% after Credit Suisse upgraded the company to outperform from neutral. The auto sector also contributed to the gains. Shares of DaimlerChrysler rose 4% after it was upgraded to overweight from equal-weight at Morgan Stanley, while Fiat rose 4.2% after the Italian car maker was upgraded to buy from neutral at UBS. Renault shares gained 2% in Paris. Steelmakers were also in focus, with shares in ThyssenKrupp down 0.9% after recent strong gains. ThyssenKrupp''s Anglo-Dutch peer Corus Group rose 1.4%, following a report that it may get an increased bid of 600 pence a share from India''s Tata Steel. Elsewhere, Deutsche Boerse rose 5% after a report that the company is considering splitting management into three divisions in a move that could lead to a break-up of the company. The French CAC-40 rose 1.1%, the German DAX 30 index gained 0.9%, while the U.K. FTSE 100 index rose 0.4%.

Crude oil prices rebounded from recent declines. Benchmark light, sweet crude rose $1.25 to $51.73 a barrel. Heating oil added 4 cents to $1.5110 a gallon, while gasoline gained 4 cents to $1.3945. Natural gas rose 54 cents to $6.867 per 1,000 cubic feet. London Brent rose 66 cents to $52.41. The U.S. dollar traded higher against its major currency rivals. The euro was quoted at $1.2932, down from $1.2959. The dollar bought 121.42 yen, up from 121.26. The British pound was quoted at $1.9717, down from $1.9733. European gold prices were mixed. In London, gold traded at $632 per troy ounce, down from $632.95. In Zurich, the precious metal traded at $630.15 per ounce, down from $631.35. Silver closed at $12.79, up from $12.74.


[R]11:30AM Market averages moved slightly higher, helped by JDSU.[/R]
Stock markets posted modest gains, as positive sales outlook from JDSU sent the tech communications firm 10% higher, helping to offset downbeat forecasts from blue chip stocks IBM (IBM: chart) and GE (GE: chart). Investors found some relief from news that communications and optical products company JDSU (JDSU: chart) lifted its Q2 sales forecasts. Shares of JDSU surged 10% and were amongst the most actively traded on the Nasdaq. Shares of the Dow components slipped 3.7% and 2% respectively. Among other companies releasing quarterly earnings, Citigroup (C: chart) fell 0.6% after posting a 26% drop in Q4 profit.

Following its early January warning, Motorola (MOT: chart) posted a 48% drop in Q4 profit as margins in its handset business collapsed. The company also said it would cut 3,500 jobs. However, the stock rose 3.5%. Schlumberger Ltd. (SLB: chart) rose 4.5% after the oil services group reported a better-than-forecast 71% profit rise. By sector, semiconductors were among the biggest gainers of the session. Oil and natural gas stocks also moved notably higher. Energy stocks rebounded as crude oil prices showed signs of stabilization. Shares in oil major Exxon Mobil (XOM: chart) rose 1.7%. At the same time, computer technology and technology hardware remained below the flat line. In late morning trading, the Dow Jones industrial average was up 5.53, or 0.04%, at 12,573.46. The Standard & Poor''s 500 index was up 4.21, or 0.30%, at 1,430.58, and the Nasdaq was up 6.98, or 0.29%, at 2,450.19. Bonds fell as stocks tried to further their gains. The yield on the benchmark 10-year Treasury note rose to 4.78% from 4.77% late Thursday.


[R]10:30AM NY-9:30PM Mumbai – The Sensex retreats in volatile trade, Satyam plunges.[/R]
The Sensex on BSE finished with 35.04 points, or 0.25%, lower at 14,182.71. The market-breadth weakened in later trading as 1,642 shares declined, 1,030 advanced and 41 remained unchanged on BSE. Of the 30 stocks in the Sensex, 19 declined, while the rest advanced. The turnover on BSE was Rs 4,126 crore, lower than Rs 5,053 crore on Thursday. On NSE, the turnover was Rs 9,053.77 crore, compared to Rs 10,178.12 on Thursday.

Economic news

Wholesale prices-based inflation crossed 6% for the first time this fiscal year It surged by 0.54% against 5.58% in the previous week. Prices of common-use items like, some pulses, tea, tomatoes and coconut, are causing concern, as well as prices of some manufactured items like steel products and edible oil which have risen too.

Trading highlights

Satyam Computer Services Ltd posted a 25% increase in Q3 profit but it missed forecasts and cut full-year sales estimate on a firmer rupee. Consolidated net profit for October-December rose to Rs 337.23 crore for Q3 of this fiscal year from 2.70 billion a year earlier.

Tech Mahindra was the most-active stock with a turnover of Rs 335.20 crore followed by Reliance and Satyam.

Advancers

Reliance Communications led the advancers, up 3.11% to Rs 449.90, on a volume of 14.79 lakh shares, rebounding from a low of Rs 431, also hitting a high of Rs 450. Gujarat Ambuja Cements gained 2.24% to Rs 148.50, expecting strong results from the company. Cigarette maker ITC added 1.77% to Rs 175.

Index heavy Reliance Industries advanced 0.88% to Rs 1,379, on a volume of 12.75 lakh shares. The stock soared to an all-time high of Rs 1,409, in early trade. ICICI Bank advanced 1.46% to Rs 986, recovering sharply from its low of Rs 955.40. JK Lakshmi Cement surged 7.90% to Rs 181.65, on reporting 386% surge in net profit for December 2006 quarter, to Rs 55.06 crore. Net sales soared 50% to Rs 228.64 crore.

Decliners
Satyam Computers led the decliners, down 5.75% to Rs 485.70, on 26.91 lakh shares. It dipped to a low of Rs 476, as results missed expectations. Ranbaxy was down 3.77% to Rs 414, ONGC lost 2.68% to Rs 892.25 and Wipro was down 3.23% to Rs 620.25. Reliance Energy slipped 2.89% to Rs 512.90. Its Q3 December total income increased Rs 1,820 crore Rs 1,137 crore, while net profit advanced to Rs 201 crore, from Rs 164 crore.
IT stocks were under heavy selling pressure. TCS declined 1.66% to Rs 1,293, Infosys Technologies shed 0.93% to Rs 2,199 and Mphasis BFL was down 0.26% to Rs 290. Auto shares also declined. Bajaj Auto lost 2.11% to Rs 2,725, Maruti Udyog edged down 0.78% to Rs 911 and TVS Motor Company was off 0.75% to Rs 79.30.

Tech Mahindra plunged 6.88% to Rs 1,769.50. Consolidated profit-after-tax before write-back of tax provision increased 17% to Rs 166.70 crore. Consolidated revenue advanced 10% on a sequential basis to Rs 769.80 crore.

Hindustan Construction Company fell 2.53% to Rs 154, after it reported a 2.9% decline in net profit in December 2006 quarter to Rs 21.99 crore from Rs 22.66 crore in December 2006 quarter.


[R]9:45AM Market opened little changed, following IBM and GE financial reports.[/R]
U.S. stocks opened near the flat line after quarterly profits from IBM (IBM: chart) and a conservative outlook from General Electric (GE: chart) raised worries about corporate profits. The two Dow components fell 4.7% and 1.9%, respectively. IBM losses added to the recent weakness of technology stocks, with the Nasdaq down over 2% for the week, dragged down by disappointing outlooks from Intel Corp. (INTC: chart) and Apple (APPL: chart).