1:15PM NY – 6:15PM UK
European markets closed lower on rising euro against dollar and yen and slowing activities in construction and manufacturing in the U.S.
European markets closed lower across the region led by a 1.4% decline in France and Spain and 1.1% in loss in Germany. Markets closed lower on higher oil and metals price. U.K. traded higher during the session but closed lower. Euro closed at $1.33 and pound at $1.98. Dollar trades at 14-year high against pound and near record level at Euro. Mining stocks led the gainers in the U.K. led by rise of 1.7% in Rio Tinto and 3.7% advance in Xstrata. In Paris EdF, local electric utility, 6.1% rose, after the highest court ruling that the current tariff for gas and electricity should be scrapped when not related to public service commitments as they were noted by the court as anti-competitive for the upcoming free market in mid-year 2007.

European Aeronautic and Defence and Space Co. rose 3% to 22.85 euro on the news report that governments controlled share holders have agreed to inject 10 billion euros in the company to work on the Airbus A350 XBW jet.

Alitalia rose 11% on the news that Italian government will sell controlling interest to international carriers. The unprofitable carrier has been hobbled by labor strike, high operating costs and stiff competition in the region. Air France-KLM Group is likely to be the leading contender for the stake. Air France rose 1.3% to 30.5 euros. Lufthansa, second largest airline group rose on comments from Morgan Stanley and target price revision of 37%. The stock gained 3.5% to close at 19.45 euros.

12:30PM NY – 6:30PM Germany The dollar tumbled to a two-year low against euro, 14-year low against pound and multi-year low against yen.
Weaker manufacturing report in the U.S. and diverging read on the industry in Europe supported a broad decline of dollar. Dollar at mid-day traded at $1.33 to a euro and $1.985 to a British pound. Most currency traders and analysts expect the dollar to continue to slide against euro and yen and remain at depressed level against pound in the coming months. The yen dropped to a record low against the euro and softer than expected inflation report in Japan. The yen traded at 154.03 to a euro on the inflation report. The Bank of England has raised its interest rates to keep the economy from overheating. The latest rate hike came on Nov 9th to a five-year high at 5%. The ECB in Europe is likely to raise rates as economic activities are likely to expand and unemployment rate is at a five-year low 7.7% across the region.

11:15AM Sensex advances 150 points supported by banks, auto shares.
The Sensexon BSE gained 148.47 points, or 1%, to close at 13,844.78, a record closing. The market-breadth was strong. As 1,484 shares advanced on BSE, 1,080 declined and 72 stocks were unchanged. The turnover on BSE was Rs 4,451 crore, lower than Rs 4,854 crore on Thursday. The turnover on NSE was Rs 8,200.29 crore, lower than Rs 12,725.13 crore on Thursday.

Economic news

The wholesale price index rose 5.45% in the 12 months to November 18, 2006, higher than the previous week annual rise of 5.29%.

India economy is on track to match recent years growth rates of about 8% in the financial year to March 2007, minister of state for finance Pawan Kumar Bansal said on Friday.

Foreign institutional investors were net buyers of Rs 258.10 crore on Thursday, November 30, according to data released today.

Most active

Parsvnath was the most active stock with a turnover of Rs 218.50 crore followed by Donear Industries, Indiabulls, Reliance and Paramount Communications.

Advancers

Ranbaxy Laboratories surged nearly 4% to Rs 385.60, with the stock rallying in late-trading after the company announced the acquisition of Be-Tabs Pharmaceuticals, the fifth largest generic drugs company in South Africa, for $70 million.

Auto shares dominated the proceedings on decent-to-strong sales numbers for November. Bajaj Auto rose 4% to Rs 2,751, after its total sales rose 33% in November 2006, to 2,43,713 units from a year ago. Hero Honda rose nearly 2% to Rs 757.35. Hero Honda today launched two new versions of its CD series motorcycles.

Tata Motors surged 4% to Rs 844.25, on expectations of strong sales for November 2006. Tata Motors is likely to disclose its monthly sales figures today. Maruti Udyog added nearly 3% to Rs 952.60. In early-trade today, the car major reported selling 55,033 vehicles in November, a 16.1% rise from a year earlier.

Private bank stocks were in demand after the latest data showed lower-than- expected rise in inflation. State Bank India jumped 4% to Rs 1,369.90. Cellular services provider Reliance Communications rose 3.7% to Rs 445.25. Reliance Energy gained 2.2% to Rs 540.05. As per reports, Maharashtra Electricity Regulation Commission has directed the company to discontinue levy of load management charges. Reliance Industries advanced 1.3% to Rs 1,262.25.

A number of energy companies surged. Alstom Projects jumped 9.7% to Rs 468.90, Bharat Bijlee gained 7.9% to Rs 1,205, ABB surged 7% to Rs 3,747, Voltamp Transformers gained 5.8% to Rs 631.80, Areva T&D rose 5% to Rs 972.10, Siemens advanced 4.7% to Rs 1,182, and KEC International gained 3% to Rs 390.

Construction firm Punj Lloyd jumped 7.6% to Rs 1,112, after the firm said it had an order worth Rs 1,000 crore. Gas cylinder maker Everest Kanto Cylinder jumped 10% to Rs 606.50, on expectation that the firm will announce a large order in the next few days.

Decliners

Hindalco declined 0.81% to Rs 171.95, TCS fell 0.72% to Rs 1,183.30, Gujarat Ambuja was down 0.59% to Rs 143.30 and Grasim shed 0.08% to Rs 2,762.