BSE Small-Cap, Mid-Cap indices edge higher

Key benchmark indices registered small losses to reach one-week closing lows on expectations of weak Q3 results. Nonetheless, the market came off intraday lows. The barometer index, BSE Sensex, lost 34.08 points or 0.22%, up about 135 points from the day's low and off close to 55 points from the day's high. Index heavyweight Reliance Industries (RIL) edged lower. Pharma stocks extended recent gains. IT stocks were mixed. Capital goods and realty stocks reversed initial losses. Power stocks gained. The market breadth was strong. The BSE Small-Cap index rose for the eighth day in a row. The BSE Mid-Cap index rose for the second day in a row.

The Sensex has jumped 359.80 points or 2.32% so far in this month. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 3,996.42 points or 20.17%. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 678.86 points or 4.48%.



Coming back to today's trade, FMCG stocks fell on profit taking after recent gains. Airline stocks extended recent gains triggered by reports the Civil Aviation Ministry is likely to drop its opposition to higher investment by foreign airlines in the sector and agree to let them hold up to 49% in domestic carriers. Auto stocks fell on worries growing competition from global vehicle makers could adversely impact sales of listed auto firms. Shares of sugar companies rose on report the government may allow further exports of sugar in the next few days. Bank stocks were mixed.

The market edged lower in early trade on weak Asian stocks. The market extended initial losses in morning trade. The market moved in a tight range in negative terrain in mid-morning trade. The market trimmed intraday losses in early afternoon trade. Intraday recovery gathered steam in afternoon trade as Chinese stocks bounced back. The market erased almost the entire intraday losses in mid-afternoon trade. The market trimmed losses after slipping into the red once again after turning positive to hit fresh intraday high in late trade.

The BSE Sensex lost 34.08 points or 0.22% to settle at 15,814.72, its lowest closing level since 2 January 2012. The index declined 170.50 points at the day's low of 15,678.30 in morning trade. The index rose 22.71 points at the day's high of 15,871.51 in mid-afternoon trade.

The S&P CNX Nifty shed 4.10 points or 0.09% to settle at 4,742.80, its lowest closing level since 2 January 2012. The index hit a low of 4,695.45 in intraday trade. The index hit a high of 4,758.70 in intraday trade.

The BSE Mid-Cap index rose 0.64% and the BSE Small-Cap index gained 1.4%. Both these indices outperformed the Sensex.

The BSE clocked turnover of Rs 1979 crore.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,640 shares rose and 1,090 shares fell. A total of 100 shares were unchanged.

Among the 30-member Sensex pack, 16 fell and rest of the stocks rose.

Index heavyweight RIL declined 1.08% to Rs 706.95. The stock was volatile. The stock hit a high of Rs 713.90 and low of Rs 703.55. RIL on Wednesday, 4 January 2012, said it has scheduled a planned maintenance turnaround of one of the crude distillation unit of its SEZ Refinery at Jamnagar complex for a period of approximately three weeks starting mid February 2012. This maintenance turnaround is planned for the first time after its commissioning during the Financial Year 2008-09, RIL said. This opportunity would also be utilised to take up productivity improvement related jobs in other secondary processing units as necessary, RIL said. During this period, other three crude distillation units at Jamnagar refining complex are expected to sustain normal operations, RIL added.

RIL had announced early last week that it is divesting a part of the interest in ETV channels in favour of TV18 Broadcast, a Network18 Group firm. RIL said that as a part of the deal with TV18 Broadcast, Infotel Broad Band Services (Infotel), a subsidiary of RIL, has entered into a Memorandum of Understanding with TV18 Broadcast and Network18 Media and Investments for preferential access to all content of the latter for distribution through the 4G Broadband Network being set up by RIL.

RIL has reportedly stated that natural gas output from its eastern offshore KG-D6 fields has dipped below 39 million cubic meters a day as it shut five wells because of high water ingress. Reports stated that the natural gas production from the Dhirubhai-1 and 3 gas fields and the MA oilfield in Block KG-DWN-98/3, or KG-D6, in the Krishna-Godavari Basin of the Bay of Bengal was 38.43 mmcmd in the week ended 25 December 2011. The output comprised 31.58 mmcmd from the D1 and D3 gas fields and 6.85 mmcmd from the MA oilfield, reports said. The KG-D6 production is lower than 61.5-mmscmd rate achieved in March, 2010, says report. The report also stated that of the 18 wells drilled, completed and put on production in the D1 and D3 fields, five wells- A2, A10, B1, B2 and B13, were kept closed due to high water cut/sanding issues.

Essar Oil rose 1.22% after the company announced the successful commissioning of Amine Regeneration Unit (ARU), which is a part of the Phase I expansion at its Vadinar refinery in Gujarat. When completed, the Phase I expansion will increase the Vadinar refinery's capacity from 14 MMTPA (3 lakh barrels per day) currently to 18 MMTPA (3.75 lakh barrels per day), as well as increase its complexity from 6.1 to 11.8. The project is nearing completion and increased throughput of 18 MMTPA will commence by March 2012, Essar Oil said.

Coal India fell 1.59% on reports that the Calcutta high court has asked the company not to implement the new pricing regime in West Bengal till 16 January 2012. The next hearing will be on 16 January 2011. Coal India has shifted to the international pricing, based on gross calorific value (GCV), from 1 January 2012.

State-run gas transmission and distribution major GAIL (India) fell 0.46%. The stock today entered the coveted BSE Sensex.

Jaiprakash Associates rose 2.41% to Rs 53.15, reversing initial losses. The Securities and Exchange Board of India (Sebi) late last week imposed a fine on top executives of the company on allegations of insider trading in the company's stock in 2008. The stock hit a 52-week low of Rs 50.45 in intraday trade today, 9 January 2012. The stock is no more a Sensex constituent.

Sebi has imposed a penalty of Rs 10 lakh each on Manoj Gaur, chairman of Jaiprakash Associates, his wife Urvashi, and brother Sameer Gaur, as well as some top executives of the company. The regulator has alleged that these individuals had taken advantage of their position by trading shares of Jaiprakash Associates while they were in possession of unpublished price sensitive information (UPSI). Sebi had investigated all trades in the stock from September 29, 2008, to October 27, 2008.

But Manoj Gaur has denied any wrongdoing. "The findings in the Order are completely erroneous and contrary to factual position. It is unfortunate that despite adequate representation to the Adjudicating Officer, frivolous inferences have been drawn. Aggrieved by the Order, we are in the process of challenging the same before the Securities Appellate Tribunal," Gaur said in a statement issued on Friday, 6 January 2012.

Tata Power Company rose 1.69% on reports that the company has commissioned a unit of its 4,000 mega watts (MW) power station at Mundra in Gujarat. Reports stated that Tata Power test fired its first super critical 800-MW unit with initial generation of 60 MW.

Reliance Power rose 1.77% on reports state-run Northern Coalfields has agreed to surrender land required to mine two blocks attached to the Sasan ultra mega power plant to Reliance Power. Coal from the mines - Moher and Moher Amlohri - along with another Chhatrasal block will fuel Reliance Power's Sasan and Chitrangi projects of 4,000 megawatts each being built in Madhya Pradesh with an investment of Rs 36000 crore. According to reports, NCL's decision, subject to a final nod by the coal ministry, will give Reliance Power access to 58 million tonnes of coal worth Rs 6264 crore at current prices.

Among other power stocks, Reliance Infrastructure, and GVK Power & Infrastructure rose by between 0.57% to 6.76%. NTPC fell 0.13%.

Realty stocks reversed initial losses. DLF, HDIL, Indiabulls Real Estate and Unitech rose by between 0.71% to 7.05%.

Bharti Airtel fell 2.93%, extending recent losses triggered by reports that the telecom department plans to impose penalties totaling Rs 1594 crore on five mobile phone companies for allegedly understating revenues and hence paying lower revenue share during 2006-07 and 2007-08. The stock was the top loser from the Sensex pack today.

IT stocks were mixed. India's largest software services exporter by revenues Tata Consultancy Services (TCS) gained 0.03%. The company unveils Q3 results on 17 January 2012.

India's second largest software services exporter by revenue Infosys fell 0.05%, reversing initial gains. The company announces Q3 December 2011 results on Thursday, 12 January 2012.

India's third largest software services exporter by revenues Wipro fell 1.02%.

Pharma stocks extended recent gains. Ranbaxy Laboratories, Dr Reddy's Laboratories, Biocon, Cipla and Sun Pharmaceutical Industries rose by between 1.04% to 2.92%.

Cadila Healthcare rose 2.1%, extending Saturday's 0.56% gains triggered by the company signing a letter of intent with Microbix Biosystems Inc to market the Thrombolytic drug, Urokinase in the North American markets.

Capital goods stocks reversed initial losses. Thermax, L&T, Bhel, Praj Industries, ABB and Punj Lloyd rose by between 0.1% to 3.89%.

FMCG stocks fell on profit taking after recent gains. United Spirits, Hindustan Unilever, ITC, Dabur India and Nestle India shed by between 0.05% to 2.44%.

Airline stocks extended recent gains triggered by reports the Civil Aviation Ministry is likely to drop its opposition to higher investment by foreign airlines in the sector and agree to let them hold up to 49% in domestic carriers. Jet Airways and SpiceJet rose by between 1.75% to 1.81%.

Kingfisher Airlines was flat. The Directorate General of Civil Aviation has reportedly directed the private carrier to come back with a detailed plan of financial recovery and for resolving safety issues by today, 9 January 2012. Meanwhile, State Bank of India (SBI) has reportedly classified Kingfisher Airlines' debt as a non-performing asset. SBI reportedly has an exposure of Rs 1500 crore to the airline. SBI has reportedly given 90 days to Kingfisher to get its account back on track.

Auto stocks fell on worries growing competition from global vehicle makers could adversely impact sales of listed auto firms. Mahindra & Mahindra (M&M) fell 0.18%. M&M's total automobile sales jumped 26% to 42,761 units in December 2011 over December 2010. M&M's president for automotive and farm equipment Pawan Goenka Thursday, 5 January 2012, said that the company plans to start assembling SsangYong vehicles in China, Brazil and Russia in the next two years.

M&M last year picked up a 70.03% stake in South Korean auto maker SsangYong Motor Co. for 522.5 billion Korean won. It is slated to launch SsangYong's sport-utility vehicle Rexton in India in the second half of 2012 and the Korando C SUV in 2013.

Ashok Leyland was flat. The company reported sales of 9,088 units for December 2011 including 1,099 units of the recently launched LCV for cargo transportation -- Dost. Adjusting for Dost which was launched in October 2011, sales came in at 7,989 units, up 6% year-on-year.

Tata Motors fell 1.52%. The company's total sales of commercial and passenger vehicles jumped 22% to 82,278 units in December 2011 over December 2010. The domestic sales of the vehicles in both categories for the month stood at 76,663 cars, a 24% jump compared to 61,685 in December 2010, the company said in a statement. However, exports declined 3% to 5,615 units compared to 5,809 in December 2010.

Maruti Suzuki India rose 1.8%. Maruti on Friday, 6 January 2012, unveiled India's first compact multi purpose vehicle Ertiga at the auto expo. Ertiga's compact dimensions make it easy to park ad maneuver, Maruti said. Maruti had on Thursday, 5 January 2012 unveiled XA Alpha -- a concept for a compact sports utility vehicle (SUV).

Maruti's total vehicle sales fell 7.1% to 92,161 units in December 2011 over December 2010. Domestic sales dropped 13.4% to 77,475 units. Exports surged by 50.5% to 14,686 units.

Fiat India Automobiles said early last week that it expects to conclude shortly discussions with Maruti Suzuki India for the supply of diesel engines for cars, a step that will allow the local unit of Suzuki Motor Corp. cut the waiting period on its Swift model. Maruti currently sources all its diesel engines from Suzuki Powertrain, a joint venture between Maruti and Suzuki. These engines are made using Fiat's technology.

Two-wheeler makers dropped on concerns of increased competition as global two-wheeler makers launched new models and announced expansion plans at the ongoing India auto show to attract more buyers in the world's second-largest market for motorcycles and scooters. Bajaj Auto shed 1.49%. The firm unveiled an ultra-low-cost car early last week, its first foray into the four-wheel market. The compact "RE60" boasts of high fuel efficiency and low carbon dioxide emissions, but the firm did not release a price tag.

Bajaj Auto's total sales rose 10% to 3.05 lakh units in December 2011 over December 2010. Motorcycle sales rose 8% to 2.63 lakh units and commercial vehicle sales rose 27% to 41,991 units. Exports jumped 25% to 1.19 lakh units. The company announced the monthly sales data at the beginning this month.

India's largest two-wheeler maker Hero MotoCorp declined 0.13%. Hero MotoCorp expects double-digit percentage growth in sales for the fiscal year starting in April, Managing Director Pawan Munjal said at the New Delhi Auto Expo. The company on Friday, 6 January 2012 unveiled its first concept hybrid scooter.

The company last week launched two motorcycle models and one scooter model. The company will start retail sales of the 110-cubic-centimeter scooter model Maestro later this month, while that of the 110cc motorcycle model Passion X Pro and 125cc motorcycle Ignitor will happen in the remainder of the year.

TVS Motor Company fell 1.16%. The stock had been under selling pressure recently after the company said its total sales declined 0.79% to 1.70 lakh units in December 2011 over December 2010.

Shares of sugar companies rose on report the government may allow further exports of sugar in the next few days. Bajaj Hindusthan, Shree Renuka Sugars and Balrampur Chini Mills rose by between 2.95% to 7.34%.

According to the report, the Food Ministry will be moving a proposal next week for convening a meeting of the Empowered Group of Ministers (EGoM) on Food, headed by Finance Minister Pranab Mukherjee. In November 2011, the government had approved the export of one million tonnes of sugar in the 2011-12 marketing year, which started from October 2011. Report suggest that there is scope for allowing more sugar exports as domestic production is expected to exceed demand and global prices have also started firming up.

Shares of companies linked to railway business rose as investors snapped up these battered stocks in the run up to the Railway Budget in March 2012. BEML, Titagarh Wagons, Texmaco, Kalindee Rail Nirman, Kernex Microsystems (India) and Stone India rose by between 2.68% to 20%

Metal stocks reversed initial losses. Sail, Jindal Steel & Power, Nalco, JSW Steel, Hindustan Zinc and Sterlite Industries gained by between 0.11% to 2.88%. NMDC, Tata Steel and Jindal Saw fell by between 0.28% to 2.01%. Hindalco Industries was flat.

Bank stocks were mixed. India's largest private sector bank by branch network ICICI Bank rose 0.04%, reversing initial losses. India's second largest private sector bank by branch network HDFC Bank gained 0.84% reversing initial losses.

India's largest commercial bank by net profit and branch network State Bank of India (SBI) declined 1.92%. The bank early last week said it has cancelled the negotiations for establishing a joint venture entity with Visa Inc and Elavon Inc for conducting the merchant acquiring business. In terms of the bank's earlier letter dated 4 May 2010, a joint venture was proposed between SBI Payment Services, the wholly owned subsidiary of SBI and Visa Inc and Elavon Inc.

The government will infuse Rs 5000 crore ($942 million) to Rs 6000 crore ($1.13 billion) in State Bank of India by the end of the current fiscal year in March, the bank's chairman Pratip Chaudhuri said on Thursday, 5 January 2012. After the capital infusion, the government's share [in the bank] will increase to 64%, Chaudhuri told media reporters. The government currently owns 59% of India's largest lender by assets. Mr. Chaudhuri also said that the bank may raise further capital next fiscal year through a follow-on share sale or a private sale of shares to institutional investors.

In its draft guidelines on Basel III capital regulation norms for banks unveiled recently, the RBI has suggested that Common Equity Tier 1 (CET1) capital must be at least 5.5% of risk-weighted assets (RWAs). Tier 1 capital must be at least 7% of RWAs and total capital must be at least 9% of RWAs, according to the draft guidelines. RBI has suggested capital conservation buffer in the form of Common Equity of 2.5% of RWAs.

The RBI said the implementation period of minimum capital requirements and deductions from Common Equity will begin from January 1, 2013 and be fully implemented as on March 31, 2017. Capital conservation buffer requirement is proposed to be implemented between March 31, 2014 and March 31, 2017. Instruments which no longer qualify as regulatory capital instruments will be phased-out during the period beginning from January 1, 2013 to March 31, 2022.

For OTC derivatives, in addition to the capital charge for counterparty default risk under Current Exposure Method, banks will be required to compute an additional credit value adjustments (CVA) risk capital charge. The parallel run for the leverage ratio will be from January 1, 2013 to January 1, 2017, during which banks would be expected to strive to operate at a minimum Tier 1 leverage ratio of 5%. The leverage ratio requirement will be finalized taking into account the final proposal of the Basel Committee.

Cals Refineries clocked highest volume of 57.27 lakh shares on BSE. Suzlon Energy (51.74 lakh shares), IFCI (40.58 lakh shares), Dazzel Confindive (40 lakh shares) and Lanco Infratech (39.21 lakh shares) were the other volume toppers in that order.

MMTC clocked highest turnover of Rs 171.02 crore on BSE. SBI (Rs 92.76 crore), Hindustan Copper (Rs 63.89 crore), RIL (Rs 42.14 crore) and Everonn Education (Rs 41.28 crore) were the other turnover toppers in that order.

Foreign institutional investors (FIIs) sold shares worth Rs 28.63 crore on Saturday, 7 January 2012, as per provisional data from the stock exchanges. FIIs had bought shares worth a net Rs 786.22 crore in four trading sessions on 3 to 6 January 2012, as per data from the stock exchanges. Earlier, FIIs had offloaded shares worth a net Rs 1287.84 crore in three trading sessions from 29 December 2011 to 2 January 2012.

The next major trigger for the market is Q3 December 2011 corporate earnings, which will start trickling in from later this week. The focus will be on guidance from the company managements on outlook for the remaining part of the year and for the next year. Analysts expect weak Q3 December 2011 results due to lower volume growth in a slowing economy, higher raw material costs and higher interest charges.

IT bellwether Infosys and housing finance major HDFC report Q3 results on 12 January 2012. TCS and HCL Tech unveil quarterly results on 17 January 2012. HDFC Bank and Bajaj Auto unveil Q3 results on 19 January 2012. Axis Bank unveils Q3 results on 20 January 2012. JSW Steel reports its Q3 standalone results on 20 January 2012.

Asian Paints and Zee Entertainment Enterprises unveil Q3 results on 21 January 2012. L&T, Maruti Suzuki and Kotak Mahindra Bank unveil Q3 results on 23 January 2012. Biotech major Biocon unveils Q3 results on 24 January 2012. Iron ore exporter Sesa Goa unveils Q3 results on 25 January 2012. Dabur India unveils Q3 results on 31 January 2012. Mahindra & Mahindra unveils Q3 results on 7 February 2012. India Cements announces Q3 results on 6 February 2012.

The Reserve Bank of India (RBI) on Thursday, 5 January 2011, raised the annual limit of foreign currency convertible bonds (FCCBs) for companies to $750 million under the automatic route from $500 million earlier. The increase in the ceiling for FCCBs under automatic route will not only help Indian corporates across all segments access higher quantum of overseas funds but also encourage greater inflow of foreign exchange. Corporates in specified service sectors like hotels, hospitals and software, can raise FCCBs up to $200 million subject to the condition that the proceeds would not be used for acquisition of land. It also said henceforth ECBs of up to $20 million or equivalent in a financial year will have a minimum average maturity of three years, while for ECBs of $20-750 million the average maturity would be of five years.

The government has decided to allow Qualified Foreign Investors (QFIs) to directly invest in the Indian equity market from 15 January 2012. A QFI is an individual, group or association resident in a foreign country that is compliant with Financial Action Task Force (FATF) standards. QFIs include pension funds which normally tend to stay invested for a longer period of time. QFIs do not include FIIs/sub accounts. In August last year, the government allowed foreign investors to directly invest up to $13 billion in equity and debt schemes of mutual funds.

Qualified foreign investors, or QFIs, will now be able to invest individually up to 5% of the capital of the Indian company. Cumulatively, QFIs can invest up to 10% of the capital of the company being invested in. These limits are over and above the FII and NRI investment ceilings prescribed under the PIS route for foreign investment in India, a government statement said.

Food inflation plunged into the negative territory in the fourth week of December mainly due to base effect, data released by the Government showed on Thursday, 5 January 2011. Fuel inflation edged up though. Food inflation shrank by 3.36% in the week ended December 24, after rising by 0.42% in the preceding week. Inflation in the Primary Articles group fell to 0.1% in the week under review, from 2.7% in the week ended December 17. Inflation in the Fuel & Power group stood at 14.60% in the week ended December 24, versus 14.37% in the previous week.

The RBI is likely to begin easing monetary policy to address concerns about economic growth, Governor D Subbarao said in an interview to a foreign electronic media house, reiterating comments made by the RBI when it kept rates unchanged on 16 December 2011. At its mid-quarterly monetary policy review meet on 16 December 2011, the RBI left its main lending rate unchanged in order to support faltering economic growth as inflation shows signs of cooling. While inflation remains on its projected trajectory, downside risks to growth have clearly increased, RBI had said in a statement on 16 December 2011. From this point on, monetary policy actions are likely to reverse the cycle, responding to the risks to growth, RBI had said.

RBI had said inflation risks remain high and inflation could quickly recur as a result of both supply and demand forces. RBI also said that the rupee remains under stress. The timing and magnitude of further actions will depend on a continuing assessment of how these factors shape up in the months ahead, RBI said. The RBI has raised rates 13 times since March 2010.

Data on industrial production for November 2011 on Thursday, 12 January 2012, could provide cues on the central bank's likely policy stance at the third quarter review of Monetary Policy 2011-12 scheduled on 24 January 2012.

Credit rating agency Moody's Investors Service on 14 December 2011 said that the sharp decline in the value of the Indian rupee against the dollar over the past few months is generally exerting only a moderate impact on rated Indian companies. Risks for companies holding large amounts of dollar denominated debt are also manageable in the near term, given that debt maturities are limited for this time frame, Moody's said in a new report. This means Indian companies rated by Moody's do not have a significant dollar outflow at a time when the Indian rupee is losing ground.

The budget for 2012/13 ending March will be presented after elections scheduled in five states, Finance Minister Pranab Mukherjee said on Monday, 2 January 2012. State elections are scheduled between the end of January and early March. The annual budget is usually presented on the last working day of February. The Election Commission on 24 December 2011 announced the dates for the assembly polls in Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa. Uttar Pradesh will have polling on February 4, 8, 11, 15, 19, 23 and 28, while Uttarakhand and Punjab will go to polls on January 30. Manipur will have polls on January 28 and Goa on March 3.

European stocks reversed initial gains on Monday ahead of a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy. Key benchmark indices in France, and Germany fell by between 0.23% to 0.24%. UK's FTSE 100 rose 0.02%.

German exports jumped 2.5% in November data showed on Monday, unexpectedly widening the trade surplus in a sign Europe's largest economy is still outpacing peers.

French President Nicolas Sarkozy will meet German Chancellor Angela Merkel in Berlin today, 9 January 2012 for talks that are likely to centre on new rules to enforce budget discipline across the European Union (EU). The two leaders are anxious to flesh out a plan agreed at a December 2011 summit by all EU members except Britain for a new treaty to forge closer fiscal integration, as Europe battles to stem a sovereign debt crisis in the euro zone. Meanwhile, a report in a German newspaper over the weekend said Greeces second bailout will need to be bigger than the planned euro 130 billion ($166 billion) owing to worsening budget figures.

Finance ministers from the EU's 27 members will meet on 23 January 2012 before their leaders hold a summit a week later. They will be under intense pressure to find a definitive solution to the crisis which threatens the very survival

Asian stocks were mixed on Monday, 9 January 2012, as doubts about the euro-zone's efforts to contain the debt crisis prompted investor caution despite upbeat US employment data released on Friday, 6 January 2012. Key benchmark indices in Singapore, South Korea and Taiwan fell by between 0.39% to 0.9%. The Japanese share markets were closed for a holiday. Indonesia's Jakarta Composite rose 0.51%.

Chinese and Hong Kong stocks surged as hopes that Beijing may soon relax its monetary policies to support economic growth spurred strong buying across sectors. The Shanghai Composite index jumped 2.89%. In Hong Kong, the Hang Seng jumped 1.47%. The gains on Chinese and Hong Kong bourses came after Chinese Premier Wen Jiabao, over the weekend, called for efforts to boost confidence in the share market, and for rule changes to allow private-capital investment in banks and insurers

Trading in US index futures indicated that the Dow could gain 16 points at the opening bell on Monday, 9 January 2012. US stocks mostly declined on Friday, 6 January 2012, as investors measured further evidence of an improving labor market against Europe's troubles, illustrated by the euro's decline. The Bureau of Labor Statistics reported that the US economy added a net 200,000 nonfarm payrolls in December, better than forecasts for a 150,000 gain. The jobless rate in the US fell to 8.5%, nearly a three-year low.