[R]1:00PM European markets closed mostly higher.[/R]
European stock markets finished mostly higher on Thursday, reflecting strong auto stocks and well-received U.S. inflation data. However, disappointing financial results from chipmaker Infineon Technologies, bank BNP Paribas and publisher Reed Elsevier limited the upward trend. The German DAX 30 rose 0.2%, as gains for Volkswagen and DaimlerChrysler offset weakness in the shares of Infineon Technologies. The chipmaker dropped 2.3% after it said its quarterly results were weighed down by charges for the carve-out of memory-chip unit Qimonda. The upbeat U.S. consumer price inflation data lifted interest-rate sensitive stocks like Deutsche Bank, up 0.6%. London FTSE 100 climbed 0.4%, boosted by 6.7% gain for electricity grid operator National Grid. Shares of Anglo-Dutch media conglomerate Reed Elsevier, lost 4.6% because of a weak textbook market. The French CAC 40 edged down 0.1%, dragged by weakness in the banking sector after BNP Paribas dropped 2%, even after reporting a stronger-than-forecast 25% profit rise. Rivals Societe Generale and Credit Agricole also closed lower.

Crude oil prices were steady below $59. Crude oil December contract fell 16 cents to $58.60 a barrel. Heating oil added 3 cents to $1.72 a gallon, while gasoline lost 2 cents to $1.57. Natural gas futures fell 24 cents to $7.08 per 1,000 cubic feet. London Brent rose 20 cents to $60.81. The U.S. dollar traded higher against its rival currencies. The euro was quoted at $1.2807, down from $1.2823. The dollar bought 118.11 yen, up from 118.05. The British pound was unchanged at $1.8892. European gold prices recovered from recent decline. In London, gold traded at $624.40 per troy ounce, up from $621. In Zurich, the precious metal traded at $623.35 per ounce, up from $620.20. Silver closed at $13.05, up from $12.75.


[R]11:30AM Applied Materials weighed on tech stocks.[/R]
U.S. stocks reversed from earlier gains and turned mixed in late Friday trading, with the Nasdaq falling below the unchanged line, while the Dow and the S&P 500 trading in positive territory. The market welcomed news that consumer price inflation eased in October, but bellwether Applied Materials hurt sentiment with disappointing quarterly results.

Applied Materials (AMAT: chart) weighed on the tech sector, falling 4.8% after the maker of semiconductor manufacturing equipment reported a weaker-than-expected Q3 profit. The company also lowered its guidance for Q4. Dell Inc. (DELL: chart) was another drag on the Nasdaq, falling fell 4.6% after the computer maker delayed its Q3 earnings report as the SEC started a formal investigation into the company.

Sears Holdings (SHLD: chart) said that Q3 profits more than tripled, boosted by $101 million in investment income and cost-cutting. Earnings jumped to $1.27 per share, up from 35 cents per share a year earlier, beating analyst expectations of 98 cents. However, company’s sales continued to decline. Revenues dropped to $11.9 billion from $12.2 billion. Same-store sales fell 4.8% at Sears stores. Company’s shares dropped 4.6% in morning trading. Williams-Sonoma (WSM: chart) tumbled 8.1% after the seller of home furnishings reported a 21% drop in Q3 profit. The company also lowered its Q4 forecast.

In deal news, Clear Channel (CCL: chart) agreed to be acquired for about $18.7 billion by an investment group led by Thomas H. Lee Partners LP and Bain Capital Partners LLC. The deal includes about $8 billion in debt. Clear Channel gained 3.9%. Reader''s Digest (RDA: chart) rose 7.1% after it accepted an acquisition bid for about $1.61 billion by an investment consortium led by private equity group Ripplewood Holdings LLC. In late morning trading, the Dow Jones industrial average was up 28.25, up 0.23%, at 12,279.96. The Standard & Poor''s 500 index was up 3.49, up 0.25%, at 1,400.06, and the Nasdaq composite index was down 1.80, or 0.07%, at 2,440.95. Bonds showed little movement, with the yield on the benchmark 10-year Treasury note flat at 4.62% from late Wednesday.


[R]10:30AM The Sensex rises for the sixth consecutive day on banks, cement shares.[/R]
The Sensex on BSE advanced 36.52 points, or 0.27%, to end at 13,505.89. The market was highly volatile. The BSE Sensex traded withing a range of 129 points for the day. The market-breadth was positive in early trading but turned negative due to weak small-caps. As 1,537 shares declined on BSE, 1,009 advanced and 62 stocks were unchanged. For every two advancers, there were three decliners. From the Sensex stocks 12 advanced, while the rest declined. The turnover on BSE was Rs 6,110 crore, higher than Rs 5,088 crore on Wednesday. The turnover on NSE was Rs 10,321.46 crore, much higher than Rs 8,768.6 crore on Wednesday.

Economic news

Strong macro economic fundamentals and erasing of the revenue deficit are pre-requisites for moving toward capital account convertibility, former RBI Deputy Governor S. S. Tarapore, who headed the Committee on Fuller Capital Account Convertibility asserted.

Most active stocks

Gujarat Ambuja Cement was the most active stock with a turnover of Rs 716.88 crore. It was followed by Hindustan Zinc and ACC.

Advancers

Gujarat Ambuja Cement was in focus today. The stock rose 1.65% to Rs 139.50, on a cumulative volume of 51.65 lakh shares. The block deals with a turnover of Rs 694 crore, constituted 3.6% (5 crore shares, 2.5 crore shares each) of its equity capital of Rs 272.02 crore (face value Rs 2 per share). It was also the most active stock on BSE, accounting for around 11.75% of the total turnover on BSE.

Another cement large-cap, ACC, surged 5.83% to Rs 1,079. It had also advanced to an all-time high of Rs 1,093.80, intraday.

Private sector HDFC Bank led the advance, up 6.58% to Rs 1,148.25 It had hit a new all-time high of Rs 1,150, in the last moments of trading. India’s largest private sector bank ICICI Bank ended marginally lower by 0.10% to Rs 880.35. SBI jumped 3.21% to Rs 1,216, on a volume of 14.28 lakh shares. It had also surged to an all-time high of Rs 1,227.95.

Other banks also rallied. Punjab National Bank was up 0.27% to Rs 548, Federal Bank gained 4.20% to Rs 223.55, Indian Overseas Bank added 4.36% to Rs 120.80, Oriental Bank of Commerce moved 1.73% higher to Rs 255, Canara Bank edged up 0.89% to Rs 300, and Bank of India gained 2.63% to Rs 191.

Sterlite Industries advanced 0.90% to Rs 542.15, on the back of robust second-quarter results, and a board decision to venture into power sector. The company reported a surge in consolidated net profit for the quarter ended September 2006 to Rs 1,207 crore from Rs 259 crore.

Decliners