[R]11:00AM New York – U.S. stocks lost its earlier gains after the manufacturing report and rise in oil and commodities prices.[/R]

Dow Jones Industrial Average fell 117.05 to 13,151.86, Nasdaq declined 14.18 to 2,638.10, and S&P 500 lost 8.98 to 1,459.38.

The manufacturing index published by the Institute of Supply Management fell to 47.7 in December from 50.8 in November. The index level below 50 suggests a decline in manufacturing activity. The index of prices paid by manufacturers rose to 68 from 67.5.

Market averages quickly changed its course and lost their gains in the first 30 minutes of trading to losses.

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during November 2007 was estimated at a seasonally adjusted annual rate of $1,165.1 billion, 0.1% above the revised October estimate of $1,163.6 billion. The November figure is 0.1% below the November 2006 estimate of $1,166.3 billion. During the first 11 months of this year, construction spending amounted to $1,076.2 billion, 2.5% below the $1,103.9 billion for the same period in 2006.

Amazon.com (AMZN: chart) gained $3.62 to $96.26 after an analyst at Citigroup revised rating on the company to ‘buy’ from ‘hold’.

Oil jumped $2.00 to $97.98 a barrel, gold surged $12.60 to $850.60, corn front month futures rose 2.6%, and wheat front month futures increased 3.4%.

Restaurant stocks declined in the morning trading after investors worried that rising oil prices will hurt consumer spending. Cheesecake Factory (CAKE: chart) fell $1.61 to $22.08, Darden Restaurants Inc declined 74 cents to $26.97, and P F Chang’s China Bistro fell $1.02 to $21.82.


[R]10:00AM New York, 7:30PM Mumbai - Sensex stocks opened the year with a rise of 0.80%.[/R]

The 30-share BSE Sensex index closed up 0.8% to 164.59 at 20,465.30. During the day, the index traded in a range of 450 points.

The broader CNX S&P Nifty was up 0.8% or 35.05 at 6179.40. Banking stocks rebounded from earlier loses while software shares were subdued.

Of the stocks traded on the BSE, 1,974 shares advanced on the Bombay Stock Exchange 934 shares fell, and 13 remained unchanged. Turnover on BSE amounted to 10,984 crore rupees while turnover on the National Stock Exchange was at 22,655 crore rupees.

Of the Sensex shares, 16 advanced while the rest declined.

Market regulator SEBI is reviewing the 10% limit on stake held by directors or key management personnel in a company, proposed to be brought under the insider trading regulation.

The SEBI also proposed that company insiders should surrender profits made in any equity-based securities transactions of the company that is sold within six months of purchase.

Reliance Energy rose 4.09% to 2,372.10 rupees. It led the advancers in the Sensex index on news reports that Reliance Power is planning to raise $3 billion through the initial public offering of 26 crore shares at a price between 405 rupees to 450 rupees per share. Reliance Energy will lower its holding in Reliance Power to 50% from the current 100%.

Housing Development Finance Company gained 3.8% to 3,030 rupees. HDFC recently agreed to sell 7.15% stake in its life insurance joint venture - HDFC Standard Life Insurance Company a Mauritius based company, to Standard Life for 201 crore rupees.

State Bank of India advanced 1.2% to 2,413.20 rupees, ICICI Bank surged 3.4% to 1,273 rupees.