Mining group Vedanta Resources came down to earth with a bump today after yesterday's 3.5% rise.
Its shares lost 109p to £21.21, a 4.9% decline, on suggestions the company was talking down expectations for its forthcoming half year results. The idea was that the company was suffering because of the recent appreciation of the Indian rupee.
But sources close to the company played down the tale, while also pointing out the constant volatility in mining shares, which can rise or fall sharply along with commodity prices.
Apparantly Vedanta has indeed been phoning around brokers, but to get concensus forecasts ahead of its figures. "They have given all the guidance they are going to give," said the company source.
However it later transpired that Citigroup analysts have cut their earnings expectations by 5.9% for the full year to reflect the strength of the rupee, which has appreciated by around 10% against the US dollar since the start of the year.
All this made a good excuse for some profit taking in the miners, with Antofagasta also lower, down 27p to 833.5p, and Xstrata down 109p to £34.67 as metal prices eased.
By the close the FTSE 100 index was down 47 points at 6659.0, ahead of tomorrow's key US interest rate decision. There was little help from Wall Street, which got off to a losing start after more poor US housing figures.
The pound jumped to a new 26-year high on fading hopes of an imminent UK rate cut, but this did not stop housebuilders recovering from their recent slump as bargain hunters moved in. Barratt Developments added 18p to 649p, while Persimmon rose 17.5p to 998p.
There was fun and games at sportswear firm Umbro, where Nike has made a 195p a share offer, including the company's proposed dividend.
Mike Ashley's Sports Direct waded into the market and paid 195p a share to take its stake from around 11% to 29.9%, the most it can own without making a bid.
Traders said Ashley could be trying to ensure he has some say in Umbro's trading policy once it is taken over by Nike, or could even be planning to bid himself. Umbro climbed 3.5p to 193.5p, while Sports Direct fell 6.5p to 135.5p.
Back among the big caps, there was some speculative talk around Scottish & Newcastle and insurer Friends Provident.
Scottish added 14.5p to 773.5p on talk of a counter bid to Carlsberg and Heineken's joint 720p a share offer, which the UK brewer has rejected. "We could soon see this reach £8 a share," said one trader.
Meanwhile Friends - the rejected suitor of Resolution - rose 3p to 182p on vague suggestions that Axa or Zurich Financial could now be interested in the business.
On the results front, fund management group Schroders climbed 71p to £15.47 after a better-than-expected 53% rise in third quarter profits, although it warned the outlook was more challenging.
Cigarette maker Imperial Tobacco recovered from an earlier fall to close 4p better at £24.47. The company reported a 12% rise in full year profits, but also said its proposed takeover of Spain's Altadis would not be completed until January.
But sugar group Tate & Lyle fell 8.25p to 433p ahead of half year results tomorrow.
Vodafone was 4.2p lower at 189.8p after disappointing third quarter results from Dutch rival KPN, while oil and gas explorer Cairn Energy fell 127p to £22.79 in the wake of recent downgrades and a decline in the crude oil price. Cairn was rumoured last week to be in the bid sights of BP.
Lower down the market, electronic equipment group XP Power slumped 93p to 239.5p after it revealed full year profits would miss expectations.
Estate agency Humberts Group fell 8.5p to 39p as it too warned on profits, with Panmure Gordon cutting its recommendation from buy to hold. Later it emerged that Humberts' chief executive Max Ziff had bought 150,000 shares in the company at 40p, taking his stake to 1.1%.
A disappointing drilling update from Kazakhstan left Victoria Oil & Gas 2.75p lower at 17.25p.
On the way up was surveillance systems group Petards, up 0.035p to 0.46p as it announced another contract from the Ministry of Defence.
Software business Proactis added 11p to 69p after it moved into profit at the full year.
Recruitment group Imprint slipped 0.5p to 104.5p. Traders are hoping for imminent news of a deal, perhaps a bid from rival OPD. Meanwhile Stephen James, a prolific investor in small companies, bought 2.814% of Imprint through contracts for difference, while former chairman Pierce Casey declared a 3.76% stake. Casey has reportedly been backing Imprint's former chief executive Brian Hamill, who wants to buy part of the business from the company.
There was some speculative buying in UniVision Engineering, a Hong Kong-based business which designs and installs digital surveillance equipment. Traders said it had a huge potential market in China, especially ahead of the Beijing Olympics next year. The company's shares added 0.75p to 3.125p.
Finally Dobbies Garden Centres was steady at £15.10 as the company - now controlled by Tesco - said it would cancel its dividend to concentrate on its expansion plans. The move will hit Tom Hunter, who amassed a near 30% stake in Dobbies as part of an attempted bid, only to lose out to Tesco.
By mid-afternoon the FTSE 100 index was down 46.5 points at 6659.5, ahead of tomorrow's key US interest rate decision. But more poor US housing figures meant Wall Street got off to a subdued start.
The pound jumped to a new 26-year high on fading hopes of an imminent UK rate cut, but this did not stop housebuilders recovering from recent weakness. Barratt Developments added 17.5p to 648.5p, while Persimmon rose 26.5p to £10.07.
There was fun and games at sportswear firm Umbro, where Nike has made a 195p a share offer, including the company's proposed dividend. Today a tranche of 16m shares changed hands at 195p - an 11% stake - with traders suggesting the buyer could be Mike Ashley's Sports Direct, which already owns 15%, or even Nike itself.
If it is Ashley, traders said he could be trying to ensure he has some say in Umbro's trading policy once it is taken over by Nike, or could even be planning to bid himself. Umbro climbed 2.5p to 192.5p.
Back among the big caps, fund management group Schroders climbed 71p to £15.47 after a better-than-expected 53% rise in third quarter profits, although it warned the outlook was more challenging.
But cigarette maker Imperial Tobacco lost 6p to £24.37. The company reported a 12% rise in full year profits, but news of a delay until January in its proposed takeover of Spain's Altadis hit the shares. Sugar group Tate & Lyle fell 11.5p to 429.75p ahead of half year results tomorrow.
Vodafone was 5.1p lower at 188.9p after disappointing third quarter results from Dutch rival KPN, while oil and gas explorer Cairn Energy fell 136p to £22.70 in the wake of recent downgrades and a decline in the crude oil price. Cairn was rumoured last week to be in the bid sights of BP.
Lower down the market, electronic equipment group XP Power slumped 90p to 242p after it revealed full year profits would miss expectations.
Estate agency Humberts Group fell 8.5p to 39p as it too warned on profits, while a disappointing drilling update from Kazakhstan left Victoria Oil & Gas 2.5p lower at 17.5p.
On the way up was surveillance systems group Petards, up 0.06p to 0.485p as it announced another contract from the Ministry of Defence.
Software business Proactis added 11p to 69p after it moved into profit at the full year.
Recruitment group Imprint edged up 0.75p to 105.75p. Traders are hoping for imminent news of a deal, perhaps a bid from rival OPD. Meanwhile Stephen James, a prolific investor in small companies, bought 2.814% of Imprint through contracts for difference, while former chairman Pierce Casey declared a 3.76% stake. Casey has reportedly been backing Imprint's former chief executive Brian Hamill, who wants to buy part of the business from the company.
Finally Dobbies Garden Centres was steady at £14.70 as the company - now controlled by Tesco - said it would cancel its dividend to concentrate on its expansion plans. The move will hit Tom Hunter, who amassed a near 30% stake in Dobbies as part of an attempted bid, only to lose out to Tesco.