13:00PM European markets dropped on weak pharmaceuticals.
European stock markets finished in the red, pressured by weak pharmaceutical stocks for a second straight session. Disappointing sales figures, released by advertising company WPP and slower-than-expected economic growth in the U.S. also contributed to the weakness. The U.K.’s FTSE 100 closed down 0.39%, led by drug stocks AstraZeneca and GlaxoSmithKline, falling 3.7% and 2.8% respectively. Their French peer Sanofi-Aventis lost 1.5%, dragging the CAC 40 index down 0.69%. In Germany, Bayer dropped 2%, helping the DAX 30 down 0.34%. Danish pharmaceutical Novo Nordisk slipped 3.5%. However, U.K. drug company Shire closed higher 2.2% higher after it swung to a profit in Q3 on higher revenue. Outside the sector, shares of WPP Group fell 2% after reporting slower-than-forecast Q3 comparable sales growth. Auto stocks were also in focus French carmaker PSA Peugeot-Citroen issued a profit warning. Nevertheless, company’s stock gained 2.7%, followed by Germany''s Volkswagen, up 1.9%.

Crude oil slipped, despite reports of a terror alert in the Gulf region. Crude oil December contract fell 31 cents to $60.05 a barrel. London Brent fell 1 cent to $60.76. Heating oil lost 2 cents to $1.6801 per gallon, while gasoline futures declined to $1.5570. Natural gas dropped 4 cents to $7.455 per 1,000 cubic feet. The U.S. dollar traded lower against its rival currencies. The euro was quoted at $1.2735, up from $1.2693. The dollar bought 117.56 yen, down from 118.39. The British pound stood at $1.8993, up from $1.8907. European gold prices advanced. In London, gold traded at $596.80 per troy ounce, up from $594.30. In Zurich, the precious metal traded at $596.90 per ounce, up from $590.40. Silver closed at $12.04, up from $12.13.


11:30AM Slower-than-expected economic growth pressured stocks.
Weaker-than-expected Q3 GDP data generated negative sentiment on Wall Street, but speculation that continued weak data would prompt an interest-rate cut softened the decline. The U.S. dollar also came under pressure, falling 1% vs. the yen. Dow component Caterpillar (CAT: chart) fell 1%, hurt by GDP data and a forecast of falling machinery demand from fellow construction-equipment maker Ingersoll-Rand (IR: chart). Again on the Dow, General Motors (GM: chart) lost almost 1% following a brokerage downgrade, while McDonald''s (MCD: chart) fell nearly 1% after it was removed from the Goldman Americas Conviction Buy List. Losses on the blue-chip index were limited by 1% advance for Microsoft (MSFT: chart) on the back of higher quarterly profit. Sun Microsystems (SUNW: chart) rose 3.4% after reporting narrower-than-expected Q1 loss. Chevron (CVX: chart) was another notable gainer after posting a record-high quarterly profit.

After coming under pressure on Thursday, pharmaceutical stocks declined again. AstraZeneca (AZN: chart) turned in one of the sector''s worst performances, falling 3.5%. Sanofi-Aventis (SNY: chart) and GlaxoSmithKline (GSK: chart) dropped 1.35% and 2.5% respectively. Some tobacco, airline, and oil service stocks are also contributed to the broad-based weakness. Among oil service stocks, Baker Hughes (BHI: chart) dropped 4.4%, despite strong Q3 earnings growth. In late morning trading, the Dow Jones industrial average was down 16.57, or 0.14%, at 12,147.09. The Standard & Poor''s 500 index was down 3.85, or 0.28%, at 1,385.23, and the Nasdaq composite index fell 4.85, or 0.20%, at 2,374.25. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.69% from 4.72% late Thursday.


10:30AM The Sensex advances on large-cap gains and derivatives.
The Sensex on BSE finished 208.40 points, or 1.64% higher, at 12,906.81. The market-breadth was positive across the board. As 1,273 shares advanced, 1,206 declined, and 85 remained unchanged. From the Sensex stocks 25 advanced, while the rest declined. The turnover on BSE was Rs 3,934 crore, higher than Rs 3,408 crore on Thursday. The turnover on NSE was Rs 8,359.16 crore.

Economic news

The annual inflation rate in India has hit a four-month high, reaching nearer to the top of the Reserve Bank of India inflation target range and giving rise to speculation it will raise interest rates next week.

Nationwide strike was conducted by banking employees of public sector banks to protest the government guidelines of banking sector reforms. The reforms primarily guides banks to merge and consolidate and shrink the employee base with very little safety net for the laid-off employees.

Shapoorji Pallonji was granted an approval for Special Economic Zone for the IT industry to be located near Pune.

Advancers

Bharti Airtel led the advancers, up 5.03% to Rs 529.70. It had reached a new high of Rs 530. The stock was lifted by better-than-expected July-September quarter results, rising 79%. On a consolidated basis, the group reported a net income of Rs 933.82 crore for second-quarter, September 2006, compared to Rs 520.91 in second-quarter, September 2005. Bharti Airtel said low tariffs and rising middle class incomes allowed it to win four million new customers between July and September this year.

Index heavy Reliance Industries, flat till afternoon session of trade, started surging on high volume. The stock gained to Rs 1,227.10, an intraday high, as demand increased. The stock finished 4.35% higher, at Rs 1,226.35. Reliance Communications jumped 4.74% to Rs 385.50.

Credit Bank closed at a sharp premium of 82.7%, at Rs 47.50, over the IPO price of Rs 26. The stock was listed on BSE at Rs 35.35, and hit Rs 48.65 and a low of Rs 35.35. A strong block deal for 22.37 lakh shares was dealt in the United Breweries stock at Rs 168.50 per share. The stock finished 0.83% to Rs 169.45.

IT stocks advanced on fresh buying after a robust set of results from them. Tech Mahindra surged 10.16% to Rs 1,012, HCL Technologies rose 2.22% to Rs 630, Infosys jumped 1.48% to Rs 2,103, Polaris moved ahead 1.65% to Rs 135.55 and Satyam Computer egded up 0.60% to Rs 433.10.

GSK Consumer surged 7.43% to Rs 548, after its second-quarter, September 2006 net profit advanced to Rs 36.2 crore (Rs 30.3 crore). Net sales rose to Rs 301.5 crore (Rs 258.6 crore). Bank of India advanced 5.41% to Rs 164.55, following reports of 60% jump in net profit for second-quarte, September 2006 to Rs 212.13 crore (Rs 132.18 crore). Net interest income grew 46.7% to Rs 849.35 crore (Rs 578.63 crore).

Decliners

The major BSE losers were ONGC which declined 31.78% to Rs 787, TCS declined 0.28% to 1,077. Tata Steel shed 0.17% to Rs 500.50 and HDFC Bank fell 0.08% to Rs 995. Hindalco Industries shed 0.80% to Rs 187, as the company is reported to have raised aluminium prices by Rs 9,000 per tonne from 1 November 2006.

Suzlon Energy fell 5% to Rs 1,296, after it reported 13.3% growth in consolidated net profit for second-quarte, September 2006 to Rs 235.37 crore, against Rs 207.68 crore in second-quarter, September 2005. Sical Logistics plunged 10% to Rs 231.95 after the September quarter net profit fell 64%, compared with the same period last year. The company reported a net profit of Rs 6.12 crore, compared to Rs 17.13 crore a year ago.