Cobalt containing MCM-41 and HMS were synthesized by direct hydrothermal (DHT) and post synthesis methods (grafting and immobilization). The catalytic activity of these materials was investigated in the liquid phase oxidation of diphenylmethane at 80 A degrees C with TBHP (70 wt%) as oxidant. Comparative study of cobalt containing MCM-41 and HMS was carried out to reveal the catalytic performance of framework, extraframework and immobilized cobalt species. The role of the solvent in the performance of catalyst was examined with different polar and non polar solvents. Oxidation of diphenylmethane in solvent free media (under similar reaction conditions) shows formation of hydroxy derivatives of benzophenone in addition to main product (benzophenone). Hundred percent selectivity to benzophenone was obtained when the reaction was carried out in solvent.