Bharti Airtel climbed 5% to Rs 390 on 1.1 million trading volume at a price of Rs 403 and Rs 412. Bharti Airtel added more than 1.2 million GSM base subscriber in June 2006, enlarging its user base to about 23.1 million customers.

ONGC advanced 4% to Rs 1,136.15. ONGC and Mittal Steel will work together in 21 countries, as the two firms have a joint venture, ONGC Mittal Energy, to buy energy assets outside India. GAIL India advanced 2.6% to Rs 254. ONGC and GAIL, on Friday, signed an agreement under which ONGC will supply gas for 15 years to GAIL. Under the agreement, ONGC will supply 50 million cubic metres of gas per day.

Metal shares advanced in the wake of stable metal prices in London trading and on the back of recent increase in domestic prices. Sterlite Industries advanced 4.4% to Rs 425 and Hindalco gained 2.3% to Rs 172.65. Hindustan Zinc advanced nearly 4% to Rs 600.

Reliance Communications gained 3.3%, to Rs 256 supported by reports that it had won a bandwidth order from China Netcom for an estimated value of $35 million. Reliance Industries advanced 1.1% to Rs 1,043.50 on volume of 2 million.

Cement shares gained on a strong guidance for cement prices over the medium-term and on expectations of strong results in the first quarter of 2006. Gujarat Ambuja Cements advanced 3.3%, to Rs 103.45, ACC gained 2.2% to Rs 811.45, and Grasim added 1.5% to Rs 1,930.50.

Among other gainers were large-cap Maruti Udyog rising 2.4%, to Rs 800 and BHEL gaining 3% to Rs 1,950.


9:45AM Stocks opened higher on acquisitions.
Stocks opened higher on optimism for another solid earnings season and merger-and acquisition news. Kraft Foods Inc. (KFT: chart) agreed to acquire the Spanish and Portuguese units of United Biscuits for $1.07 billion, and Kimco Realty Corp. said it will buy Pan Pacific Retail Properties Inc. for $2.9 billion.

The airline sector turned in one of the market''s best performances in early trading due to a notable decrease by the price of oil. Some strength emerged in the health insurance sector, supported by notable gains for Cigna (CI: chart) and Coventry (CVH: chart). Semiconductor stocks also moved to the upside after ending at a one-year closing low Friday. Meanwhile, gold stocks posted significant weakness, followed by oil stocks which also moved lower, as the decrease by the price of oil generated some selling pressure. In the first hour of trading, the Dow rose 59.93, or 0.54%. The Standard & Poor''s 500 index was up 6.45, or 0.51%, and the Nasdaq composite index gained 12.30, or 0.58%. Bonds pulled back from last week''s rally, with the yield on the 10-year Treasury note ending up to 5.15% from 5.13% late Friday.


9:00AM Stock futures pointed to a higher start.
U.S. stock futures moved higher at the start of the week ahead of the second-quarter earnings season. Aluminum producer Alcoa (AA: chart) is due to announce its results after the closing bell, with analysts predicting it will earn 86 cents a share on revenue of $8.01 billion. General Electric (GE: chart), PepsiCo (PEP: chart), Genentech (DNA), and Texas Instruments (TI: chart) are also due to report quarterly earnings this week.

Merger-and-acquisition activity is also likely to attract some attention on Monday, with shares of Heritage Property (HTG: chart) moving higher in pre-market trading after the real estate investment trust said it agreed to be acquired by Australia-based Centro Properties Group for $3.2 billion. Under the terms of the deal, Heritage Property shareholders will receive $36.15 for each share held, representing a 5.7% premium to Heritage Property''s average closing price over the past 10 days. Reportedly, Kraft Foods (KFT: chart) said that it agreed to acquire the Spanish and Portuguese operations of United Biscuits in a deal value at $1.07 billion. At the same time, housing stocks are expected to see some early weakness after KB Homes (KBH: chart) said negative trends in the U.S. housing market could extend in 2007. Dow Jones futures were recently up 25 points, S&P 500 futures rose 2.5 points, and Nasdaq futures rose 2.8 points.

Chattem Inc, (CHTT: chart), manufacturer of healthcare products, reported Q2 net income dropped to 52 cents a share, down from 76 cents a share in the year-earlier period despite revenue growth. If not for items, net income in Q2 was 57 cents a share. The company quoted increased advertising and promotional spending to support new products, primarily Icy Hot Pro-Therapy and Selsun Salon. The company missed analysts’ forecasts for earnings of 58 cents a share.

Shaw Group Inc, (SGR: chart), engineering and construction firm, reported its Q3 loss was narrower, coming to 21 cents a share, from 31 cents a share in the year-ago quarter on 37% revenue growth. The company said it overstated Q2 net income by 14%, because of two errors. Shaw added it will refile and restate those results, which it said came from errors that were a result of material weaknesses in financial controls.

Helen of Troy Ltd., (HELE: chart), maker of household and personal care products, reported Q1 net earnings sank to 21 cents a share, from 33 cents a share in the year-ago period despite net sales growth, missing analysts’ forecasts for a profit of 26 cents a share. The company reaffirmed its fiscal year sales forecast of $600 million to $620 million and earnings of $1.70 to $1.80 a share.


8:00AM The U.S. and South Korea opened second round of free trade talks.
Following a week of negotiations in Washington last month, the U.S. and South Korea opened second round of free trade talks trying to reach an ambitious free trade agreement that aims to slash tariffs and other trade barriers between the two countries. The two sides aim to wrap up an agreement by the end of 2006 so they can submit it to their legislatures for debate and approval.

The talks face strong resistance from South Korean labor groups, especially farmers who have protested against any reduction in protections for agriculture, particularly rice. Except for agriculture, the status of a South Korea-backed industrial zone in North Korea is seen as another major sticking point in hammering out an accord. South Korea wants goods produced there subject to the agreement, while Washington has opposed the idea, saying a deal should only cover goods manufactured in the Republic of Korea. The U.S. wants more access to South Korea''s agriculture, automobile and pharmaceuticals markets, among others. Police expect about 50,000 protesters, while groups opposed to the talks hoped for numbers to top 100,000.


7:30AM Asian shares finished trading mostly in positive territory.
Asian markets finished broadly higher. Japan''s Nikkei 225 Average closed up 1.6% at 15,552.81. Banks including Mizuho Financial led the gainers. Other financials on the increase included Resona Holdings, shares of which gained 6.4%, and Mitsubishi UFJ which closed up 5.16%. Among blue chips, Canon advanced 2.3% and Honda gained 2.2%.