Markets consolidated today as Asian markets were mostly unchanged after yesterday's rally. While some of the major gainers from yesterday corrected modestly, select others continued to rally and ended with significant gains.

Indices opened with modest gains, but slipped soon after before recovering again. After trading with modest gains till early afternoon, they declined again. Afternoon trades saw alternate bouts of buying and selling within a range.

Sensex closed with losses of 17 points at 12373 and the Nifty gained 5 points to close at 3570. Nifty October futures closed at a premium of 2 points to the spot index.

VSNL saw a major up move on unconfirmed reports that minority shareholders of the company would be issued shares of the de-merged real estate company. The stock finally ended with gains of nearly 9.5 per cent and was the best performer among index stocks.

Among other telecom stocks, MTNL added nearly 3 per cent and Reliance Communications gained over a per cent.

Oil marketing stocks continued to surge on indications from the government that there would not be any reduction in retail fuel prices despite the fall in crude prices. BPCL rallied nearly 5 per cent and HPCL added more than 4.5 per cent.

Among metal stocks, Hindalco gained close to 2.5 per cent and SAIL added more than a per cent.

Siemens was the best performer among engineering stocks, adding more than 3.5 per cent.

Among other major gainers, IPCL and M&M added close to 2 per cent each.

FMCG stocks were the worst performers today. HLL ended nearly 2 per cent lower while ITC and Dabur lost close to 1.5 per cent each.

OBC corrected nearly 1.5 per cent after yesterday's rally. HDFC gave up more than a per cent and SBI lost more than 0.5 per cent.
Among techs, Wipro shed close to 1.5 per cent and Satyam ended nearly a per cent lower.

Among other major losers, Glaxo ended over 1.5 per cent lower and Grasim slipped more than a per cent.

Global markets / crude oil
US markets sustained the up trend yesterday on hopes that consumer spending may not slowdown as much as feared. Data released yesterday showed better than expected growth in retail sales for the month of September. The recovery in crude oil prices helped oil stocks.

The Dow gained close to 0.15 per cent and set a new lifetime high while S&P 500 added over 0.2 per cent to settle at its highest level in more than five years. Technology stocks were once again the best performers and the NASDAQ index gained more than 0.65 per cent.

Asian markets were flat today following yesterday's rally. Singapore and Indonesia gained 0.3 per cent each while Malaysia added over 0.2 per cent. Japan, Hong Kong and Thailand ended with marginal losses.

European indices are also mostly unchanged today after yesterday's gains.

Crude oil prices gained further on more speculation about an official production cut by OPEC to lift prices. Near month NYMEX futures gained another per cent to settle at $60.03 per barrel yesterday. The commodity has lost modest ground and is trading around $59.75 in European trades today.

Large-cap news flow

• Dabur India has merged the three Balsara companies, which were acquired earlier, with effect from 28 September 2006.
  
• has submitted a bid to acquire a Turkish manufacturer of automobile castings, according to media reports. The bid is reportedly worth around $180 million. There are also unconfirmed reports that European truck makers Volvo and Scania are in discussions to acquire a strategic stake in Ashok Leyland.
  
• Crude steel by JSW Steel for the second quarter was higher by 17 per cent as compared to same quarter of last year. The company has commissioned part of the expansion project to raise slab capacity to 3.8 million tonnes per annum.
  
• There are unsubstantiated reports that the government has approved a plan to de-merger the real estate holdings of VSNL into a separate company and shareholders of VSNL, except the Tata group, would be issued shares in the new company. Total real estate holdings of VSNL are close to 800 acres and under an agreement signed at the time of privatisation, these holdings were to be de-merged into a separate company in which the government would have majority ownership. VSNL has clarified that it has not received any such communication from the government.
  
• Ranbaxy has licensed a pain-relieving product to a Canadian company.
  
• Cipla has set up a subsidiary in Dubai to explore export opportunities.
  

Mid-Cap Action
Mid-caps and small caps were unaffected by the indifferent trend in large caps. Though some of the major gainers in recent weeks corrected, buying momentum was very strong in many stocks. The number of stocks, which were locked in upper price circuits, increased considerably.

The CNX Mid-Cap index ended with gains of 17 points, or 0.36 per cent, to finish the day at 4775. BSE mid-cap index added 0.67 per cent and the BSE small cap index ended with gains of 1.07 per cent.

Stocks of garment manufacturing and retailing companies attracted much attention today. Kewal Kiran Clothing was locked in 20 per cent upper circuit while Celebrity Fashions surged 19.5 per cent. Zodiac Clothing and Bombay Rayon Fashions gained around 16 per cent each.

Among the new listings on the NSE today, Ansal Housing was locked in 20 per cent upper circuit and Dolphin Offshore gained 18 per cent. Both stocks were already listed on the BSE.

Jayant Agro and Archies also closed in the 20 per cent upper circuits.

Crew BOS and Excel Industries were among the other major mid-cap gainers.

Rama Newsprint, Dabur Pharma, Bajaj Hindustan, Gwalior Chemicals, Sterling Biotech, Educomp, UTV and Ruby Mills were among the major mid-cap losers.

Mid-cap news flow

• There are unconfirmed reports that Daimler Chrysler is in negotiations to increase its stake in Eicher Motors, but the company has denied them. However, Eicher Motors has confirmed that it was approached by a few auto companies for a stake acquisition. Daimler Chrysler currently holds slightly more than 3 per cent of Eicher.
• Sona Koyo group is planning to set up a new manufacturing plant in the US by 2007, according to media reports. It is not clear whether the plant would be set up by the listed entity Sona Koyo Steering.
• Petron Engineering has received an order worth more than Rs3 crore from Nagarjuna Fertilisers for erecting an ammonia converter.
• Television Eighteen's internet businesses subsidiary has raised $10 million from a private equity company.
• GMR Infrastructure said its subsidiary GMR Hyderabad International Airport has given the contract to operate the aviation fuel storage facilities at the new airport to Reliance Industries.
• Zenith Birla has reserved a part of the shares being offered in the follow-on public offer for existing shareholders and shareholders of group companies. The company's public offer of 2.38 crore shares at Rs55 per share would open later this month.
• Bilpower will start commercial production at its new lamination unit by the middle of this month.
• Pearl Global has received High Court approval for the merger of 2 privately held entities with the company.
• Torrent Pharma has formed three new speciality divisions to cater to fast growing therapeutic segments.
• has launched a new malaria drug
• Rajvir Industries has started commercial operations at its new unit.
• K Sera Sera has set up a subsidiary in Singapore to engage in movie production and distribution.
• Gabriel India has permanently closed its manufacturing unit near Mumbai.
• The board of Crest Animation is due to meet next week to consider the preferential allotment of 33.85 lakh equity shares to an overseas investor.
• Aurobindo Pharma has received US FDA approval for an anti-inflammatory drug.
• Omax Autos' subsidiary company has started commercial operations.
• KEC Infrastructure would sell its real estate at Kurla, Mumbai for Rs91 crore.
• Rana Sugars would raise Rs6.82 crore from a preferential allotment of shares to promoters at a price of Rs31 per share.
• Sandesh Limited would issue 10.38 lakh shares to Bennett, Coleman & Co at a price of Rs262.82 per share.
  

*Disclaimer: The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.

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