[R]10:30AM Sensex ends nearly flat in volatile trading, Infosys jumps.[/R]
The Sensex on BSE finished 10.28 points, or 0.08% lower, at 12,353.49. The benchmark index traded in a range of 212.67 points for the day. The market-breadth, turned negative as investors sold small and mid-cap stocks. For 832 shares that advanced, 1,668 declined and 64 stocks remained unchanged. From 30-Sensex stocks, 21 declined while the rest advanced. The turnover on BSE was Rs 3,672 crore, compared to Rs 3,200 on Tuesday. The turnover on NSE was Rs 6,809.69 crore.

Advancers

Most active stock on BSE, Infosys Technologies led the advancers, surging 3.83%, to Rs 1,979 on a strong volume of 11.03 lakh shares. It reached intra-day 52-week high of Rs 2,024. Trading in the stock had a turnover of Rs 219.45 crore.

The company beat the analyst expectations for its second-quarter results. It also revised upwards its 2007 fiscal year, EPS and revenue guidance, predicting revenues between Rs 13,853 crore and Rs 13,899 crore for 2007 fiscal year.

Other IT stocks also performed well as TCS advanced 3.38% to Rs 1,045.50, Satyam Computer gained 2.39% to Rs 417 and Wipro gained 1.92% to Rs 529.90.

Mastek jumped 3.20% to Rs 368, as it registered a 41% growth in net profit for the first-quarter of 2006, to Rs 21.19 crore (Rs 15.02 crore). Revenue soared 30%, to Rs 195.93 crore (Rs 150.60 crore). The net profit growth matched market expectations, while the revenue growth disappointed.

Second-tier IT stocks also received a boost from Infosys performance. iGate Global Solutions soared 20.80% to Rs 237, as the company posted an 80% surge in second-quarter September 2006 net profit, to Rs 10.10 crore (Rs 5.60 crore). Other second-tier IT advancers included Patni Computers gaining 4.92% to Rs 424, and HCL Technologies rising 0.91% to Rs 557.

Construction company Atlanta surged 6% to Rs 283.50, on a strong volume of 51.93 lakh shares as there are reports that the company is in talks with a few US and Australian companies for joint ventures.

Decliners

Ranbaxy led the decliners, losing 2.54% to Rs 412.35. Other major decliners included Gujarat Ambuja Cements shedding 2.19% to Rs 120.45, Tata Steel off 2.30% to Rs 505.90, and Hindalco declining 2.31% to Rs 171.45.

Index heavy Reliance Industries declined 0.53%, to Rs 1,144, on a volume of 12.31 lakh shares. The company is reported to be gearing for the opening of its first retail store in about a week. The first such store in Hyderabad spanning 27,000 square feet of store space will be inaugurated on 18 October 2006.

Sterlite Optical Technologies declined 3.81% to Rs 171.65, after hitting a fresh high of Rs 183. It got an order from a Qatar-based telecom firm, Qtel, to supply copper cables worth $5 million.

Corporate news

Mahindra & Mahindra Ltd said on Wednesday it had signed a pact with Iran Tractor Manufacturing Co to sell tractors in Iran. The agreement was reached in Tehran, the Indian company announced in a statement.

POSCO Co. Ltd of South Korea announced on Wednesday it will invest $6.1 million in an Indian railway project, connecting its steel plant in Orissa to a nearby port.


[R]9:45AM Market opened sharply lower on disappointing earnings.[/R]
Weaker-than-expected Q3 earnings posted by Alcoa sent stocks sharply lower at opening, as concerns about corporate profits at the start of the earnings season weighed. The aluminum giant''s shares fell 5.5% to $26.73 after reporting 86% net profit jump that came in below analyst estimates. Genentech was another early loser, falling 2.1%, despite posting a 58% rise in Q3 net earnings, helped by better-than-expected sales of its drug Lucentis. Monsanto Co. (MON: chart), which makes herbicide and other agricultural products, posted wider Q4 loss as sales fell in its seeds and genomics segment. The company issued a fiscal 2007 forecast that came in well below analysts’ expectation. The stock traded down 5%.

In early trading, significant weakness emerged in the brokerage sector, with Legg Mason (LM: chart) helping to lead the sector lower after forecasting lower-than-expected Q2 earnings. Company’s shares tumbled 15%. In the first hour of trading, the Dow Jones industrial average was down 40.02, or 0.34%, at 11,827.15. The Standard & Poor''s 500 index was down 4.97, or 0.37%, at 1,348.45, and the Nasdaq composite index was down 10.72, or 0.46%, at 2,304.71. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.74% from 4.76% late Tuesday.


[R]9:30AM London markets edges lower by mid-day Wednesday on mining stocks.[/R]
The FTSE 100 index in London lost 18.8 points, or 0.2%, to 6,053.9 by mid-day.