Decliners

Satyam Computer led the decliners, losing 3% to Rs 426.75, as a late sell-off appeared in the stock. Second-quarter results topped market expectations, and the company revised upwards its FY 2007 EPS guidance. The results were announced before trading hours today.

ONGC lost 0.3% to Rs 1,151.70. The net profit of ONGC gained less than 1% in second-quarter, September 2005, to Rs 4,174 crore, from Rs 4,138 crore as discounts given to refiners, staff costs and the flooding of a plant topped gains accruing from high crude prices.

Refinery shares fell after OPEC unexpectedly raised its first output reduction in over two years, to 1.2 million barrels per day. BPCL lost 2.3% to Rs 393.90 and HPCL shed 2.6% to Rs 300. Bajaj Auto plunged for the third day in a row, after the company second-quarter results showed its core operating profit margins were under stress. The stock shed 1.6% to Rs 2,743. Cigarette large-cap ITC slipped 2.2% to Rs 186.

Other news

Diwali Muhurat trading will be conducted on BSE and NSE tomorrow, from 18:15 IST to 19:30 IST, to mark the beginning of Vikram Samvat year 2,063. Diwali has a special significance for stockbrokers and marks the beginning of a new business year.

9:45AM stocks opened mixed. 3M and Merck limited Dow losses.
Stocks traded in a lackluster fashion at opening, driven by mixed earnings news. The Dow erased gains on disappointing Caterpillar (CAT: chart) results a day after breaking through 12,000 for the second day in a row. The Dow component dropped 10.6% after warning that costs, a slowing housing market and lower sales would negatively affect its earnings by the end of 2006 and 2007. However, the decline was limited by 2% gain for 3M (MMM: chart) and 1.3% for Merck (MRK: chart) after they reported better-than-expected Q3 earnings. Google (GOOG: chart) supported the Nasdaq, rising 7% after it said its profit nearly doubled and revenue surged 70% during the third quarter. Yahoo (YHOO: chart) was downgraded by Stifel Nicolaus to hold from buy, citing worries about competition from rival Google. Yahoo shares lost 1.7%. In midmorning trading, the Dow fell 45.86, or 0.38 percent, to 11,965.87. The Standard & Poor''s 500 index was down 3.03, or 0.22%, at 1,363.93, and the Nasdaq composite index fell 9.75, or 0.42%, to 2,331.19, despite a strong showing by Google Inc. Bonds showed little movement, with the yield on the benchmark 10-year Treasury note flat at 4.79% from late Thursday.

9:30AM The London benchmark FTSE 100 declines, following U.S. futures down.
The FTSE 100 in London declined 1.4 points, or 0.02%, to 6,155.4 in early afternoon on Friday.

Advancers

Pearson, the media group that owns the Financial Times, advanced 1.7%, its highest level since April. The advance was sparked by Goldman Sachs, which encouraged clients to buy ahead of the trading update of Pearson.

ITV ignored a profits warning from SMG, as talks of a private equity bid continued to emerge. Its shares improved 0.9%. Despite a profits warning from US rival Martin Marietta, building materials group Hanson gained 1.3%. Rumours of a private interest helped bookmaker Ladbrokes gain 3%

Decliners

SMG was down 26% and Corus slid 1.4% after the Anglo-Dutch steelmaker recommended an offer from Tata Steel of India. Next was also under pressure, falling 1.4% on further worries about tough trading.

Wolfson Microelectronics was in focus. Its shares slumped 37% after the chip designer warned full-year revenues would fall short of expectations because of a glut of consumer electronics goods. The Wolfson warning impacted fellow chip designer CSR, which was down 3%.

Other news

UK public borrowing hit 7 billion pounds in September, leaving the Treasury with much ground to make up if it is to reach its Budget public finance forecasts this financial year.


9:00AM Stock futures declined on disappointing results from Caterpillar.
U.S. stock futures erased earlier gains and moved to the downside, hurt by disappointing earnings and guidance from blue chip equipment maker Caterpillar. Rebounding crude oil prices ahead of production cuts, also weighed. Crude oil rose 35 cents to $58.85 a barrel, following a move by the OPEC to cut production by more than expected. Positive results from Internet bellwether Google failed to lift sentiment.

In corporate news, Dow component Caterpillar (CAT: chart) slipped 8% in preopen trading after reporting disappointing Q3 earnings of $1.14 a share, up from 94 cents a year ago, but missing expectations of $1.35. The company also cut its full-year earnings outlook. Revenue of $10.52 billion topped analysts'' prediction for $9.87 billion, benefiting from higher volume, prices and currency translation. In contrast, Google Inc. (GOOG: chart) climbed 7.5% in preopen trading after the Internet search giant reported a 92% quarterly profit rise on 70% sales growth.

In other Dow components reporting results, Merck and 3M Co. topped analyst expectations. 3M (MMM: chart) said it earned $1.18 per share, up from $1.08 per share last year. Drugmaker Merck & Co. (MRK: chart) reported a 34% drop in Q3 net income to 941 million, or 43 cents per share, down from $1.42 billion, or 65 cents per share due to flat sales and restructuring costs. The pharmaceutical company said it is adding an additional $598 million to its reserves for future legal defense costs over its withdrawn painkiller Vioxx.