The court battle between NTPC and Reliance Industries inched further as both companies sought early hearing for the natural gas distribution dispute. NTPC jumped 4% to 172 rupees and Reliance increased 2.5% to 1,955 rupees.

Wipro (WIT: chart) has agreed to pay $160 million for New Jersey, U.S.A based marketRx. The company provides web based marketing solutions for healthcare and pharmaceutical companies. The company provides web based sales and marketing tracking and customer behavior tools.

Stocks of sugar companies fell sharply after gaining in the last two trading session. Dwarikesh Sugar, Balrampur Chini, Shree Renuka Sugars and Bajaj Hindustan lost mre than 2%.

Hindustan Zinc surged 3% to 722 rupees after the reports that Sterlite Industries is looking to buy 29.54% stake and raise its holding in the company to 95%.


09:45AM Wall Street opened sharply higher ahead of Bush’s speech.

Wall Street rallied at opening, lifted by news that President Bush will announce a plan to support subprime mortgage borrowers and loosen credit conditions. Reportedly, the planned proposal would allow another 80,000 homeowners in 2008 to get federally insured mortgages in addition to the 160,000 estimated to use the insurance.

Market sentiment was further boosted by optimism that Federal Reserve Chairman Ben Bernanke might hint an interest-rate cut in his speech. However, stocks erased some of their early gains after Chairman Bernanke said that lenders and investors should not rely on protection from the central bank, as it holds no responsibility for their financial decisions.

In general, the Fed Reserve Chairman matched market expectations in his speech. He said the Fed reserve is ready to act adequately to prevent the turmoil in financial markets from spreading into the broader economy. Bernanke also said that the central bank is prepared to take further action to provide liquidity and promote the orderly functioning or markets.

In addition, several economic reports were released on Friday morning. The Commerce Department reported milder-than-expected inflation in July and better-than-forecast growth in personal incomes and spending. The Commerce Department also said factory orders surged 3.7% in July, higher than the 3.3% increase that had been expected.

Among companies in focus, Accredited Home Lenders (LEND: chart) soared 36% after Lone Star Funds said it will offer $214 million for the firm, which is 44% less than it first offered for the troubled lender. Mortgage lender Countrywide Financial (CFC: chart) climbed 3.5%.

In early trading, the Dow Jones industrial average rose 118.44, or 0.89%, to 13,357.17. The Standard & Poor''s 500 index rose 15.65, or 1.07%, to 1,473.29, and the Nasdaq composite index rose 27.19, or 1.06%, to 2,592.49. Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.56% from 4.51% late Thursday.


09:00AM U.S. stock futures rallied, boosted by rate optimism.

U.S. stock futures pointed to a sharply higher opening of Friday trading session, boosted by optimism that Chairman Ben Bernanke will give a clue about interest rate cuts in his speech. The financial futures markets expect one and even two reductions of the key interest rate by the end of September.

Investors were also optimistic because President Bush is expected to announce strategy to aid borrowers struck by the housing market slump to keep their homes. Mortgage lender Countrywide Financial (CFC: chart) surged 6.3% in the pre-open, while Accredited Home Lenders (LEND: chart) soared 38% after Lone Star Funds said it will offer $214 million for the firm, which is 44% less than it first offered for the troubled lender.

On the earnings news front, Dell (DELL: chart) rose 1.9% in pre-open trade after it reported a 46% profit rise and a 5% revenue gain, beating analyst estimates.

Traders also digested economic data which showed that inflation remained cool while household incomes and spending strengthened in July. Personal incomes and spending rose 0.5% and 0.3%, respectively, while core PCE remained at 1.9%.

Dow Jones industrials futures expiring in September rose 101, or 0.76%, to 13,380, while Standard & Poor''s 500 index futures rose 14.60, or 1.00%, to 1,476.20. Nasdaq 100 index futures rose 17.75, or 0.90%, to 1,992.50.