Decliners

Reliance Industries declined 1.4% to Rs 1,286.60, in contrast to the firm eariler trend when it had traded at about Rs 1,312. Shares of oil marketing firms sank as crude price surged. Indian Oil Corporation dipped 2.2% to Rs 505, BPCL slipped 3.3% to Rs 389.65 and HPCL lost 3.4% to Rs 310.

Auto stocks were under intense selling pressure. Bajaj Auto sagged 2.6% to end at Rs 2,720 and Hero Honda shed 3% to Rs 737. Car large-cap Maruti Udyog lost 1.2% to Rs 943.50, on reports that the ministry of commerce and industry had rejected the automaker’s application for granting special economic zone status for its manufacturing facility being developed at Manesar, together with Nissan.

Tata Steel declined 1.8% to Rs 496.50. Tata Steel is optimistic it will complete the agreed takeover of Corus Group by January. Consumer goods company, Hindustan Lever, finished flat at Rs 247.10.


9:45AM Stocks advanced at opening, awaiting the outcome of the Congressional elections.
Stocks advanced modestly at opening, as traders awaited the outcome of mid-term congressional elections that could be favorable for the Democrats. Toyota Motor (TM: chart) provided a boost in early trading after reporting quarterly profit up 34%. Applied Materials (AMAT: chart) helped tech stocks up after Bank of America raised its price target on the chip maker. The stock rose 2.35%. Dow component General Motors (GM: chart) also contributed to the upward move after it said in a SEC filing that its Q3 loss was reduced by $24 million, due to additional loan sales that had not been previously reported by its GMAC arm. The stock added 0.2%.

The airline sector continued its strong performance, with Southwest Airlines (LUV: chart) helping to lead the airline sector higher. The discount airline rose 3.4% after Credit Suisse upgraded its rating on the stock to outperform from underperform. Semiconductor stocks extended Monday’s advance, with Altera (ALTR: chart) posting a notable gain after reporting Q3 earnings growth. Significant strength also emerged in the networking sector, sending the Amex Networking Index near a five-month intraday high. The market also benefited from strength in the gold, biotechnology, and internet sectors.

Housing stocks were under pressure after Toll Brothers Inc. (TOL: chart) forecast a 10% drop in quarterly home building revenue. Beazer Homes USA Inc. (BZH: chart) fell after it posted a 44% drop in earnings due to lower demand for new homes. In the first hour of trading, the Dow Jones industrial average rose 25.61, or 0.21%, to 12,131.16. The Standard & Poor''s 500 index rose 1.31, or 0.09%, to 1,381.09, and the Nasdaq composite index added 4.36, or 0.18%, to 2,370.31.


9:30AM London benchmark index advances supported by Marks and Spencer.
The FTSE 100 in London moved 0.1% higher to 6,232.5, a gain of only eight points but enough to take it to renewed five-year highs.

Advancers

Retailers led the advance after strong interim numbers from Marks and Spencer. Shares in the high street favourite were 5.8% stronger after its adjusted profit before tax rose 32%.

The improving sentiment on US equities markets helped Amvescap, the fund manager highly exposed to the US, to gain 0.8%.

Barclays advanced 0.6% after it announced the 240 million euros purchase of Indexchange, a German provider of exchange traded funds.

Industrial materials group Cookson says its full-year results would be slightly ahead of its previous expectations following an encouraging performance in the third quarter. Cookson advanced 5.27%.

Decliners

Interim numbers of Yell Group were poorly received, sending shares in the directories group down 5%.

Associated British Foods was 2.5% weaker after it revealed a 4% decline in full-year profits. The company, which also owns the Primark chain of discount clothing stores, said restructuring costs at its British Sugar unit amounted to 97 million pounds.

Brewer Scottish & Newcastle fell 2.2% after it said consumer markets in western Europe were variable and warned of increasing costs. It also said the upcoming smoking ban in England and Wales would have an adverse effect on its market.

EasyJet, the budget airline, fell 1.3% after it revealed its aircraft were less full in October. The market reacted negatively to this morning recommended all share offer from Celtic Resources for Eureka Mining, as Eureka fell 11.71%.