9:45AM U.S. stocks opened higher, boosted by Alcoa.

U.S. stock market advanced at opening Monday, trying to extend last-week rally on the back of deal-making news. Dow component Alcoa (AA: chart) gained 2% after a report said that BHP Billiton was considering a $40 billion acquisition bid of the aluminum producer.

Boeing (BA: chart) also drew attention as the Paris Air Show began and the airline carrier signed two small contracts. The stock lost 0.3%. General Electric (GE: chart) and Pearson are reportedly planning to launch a joint $5 billion bid for Dow Jones & Co. (DJ: chart), which would rival a $5 billion offer made by News Corp. (NWS: chart). Shares of Dow Jones rose 0.6%.

Further in deal action, Nymex Holding (NMX: chart) declined 2.3% after the Chicago Mercantile Holdings (CME: chart) said it is not in talks to buy the commodities exchange. On the economic news front, the National Association of Homebuilders is scheduled to release its housing index for June.

In the first hour of trading, the Dow rose 14.72, or 0.11%, to 13,654.20. The Standard & Poor''s 500 index was up 1.01, or 0.07%, at 1,533.92, and the Nasdaq composite index added 1.75, or 0.07%, to 2,628.46.


9:00AM U.S. stock futures predict higher opening, helped by deal speculation.

U.S. stock futures posted modest gains on Monday, supported by deal speculation involving aluminum producer Alcoa. Investors were also awaiting signals of whether market will continue to recover and bond yields will remain in check. With little other economic news due out at the beginning of the week, data on the U.S. housing market is expected Monday afternoon.

Alcoa (AA: chart) shares rose 2.4% in pre-market trading amid reports that BHP Billiton is reviewing plans to buy the aluminum producer. Among other companies in focus, British Imperial Chemical Industries (ICI: chart) rejected $14.2 billion offer from Akzo Nobel.

Further in M&A action, Finish Line (FINL: chart) announced an agreement to buy Genesco (GCO: chart) for $1.5 billion, which is a 10% premium to Genesco''s closing price on Friday. Genesco shares jumped 9%.

S&P 500 futures rose 2.4 points at 1,550.10 while Nasdaq 100 futures edged 0.75 of a point lower at 1,969.00. Dow industrial futures rose 28 points. Bonds rose, with the yield on the benchmark 10-year Treasury note fell to 5.14% from 5.16% late Friday.


7:30AM NY-6:30PM Mumbai Sensex dips 83 points in a highly volatile trade.

The Sensex on BSE finished Monday 82.57 points, or 0.58%, lower at 14,080.14.

The market-breadth was weak. As 1,126 stocks advanced, 1,411 declined and only 61 stocks remained unchanged. Of the 30 stocks in the Sensex, only seven advanced, while all the others declined. The turnover on BSE was Rs 3,676 crore, signaling buying at the primary market. The turnover on BSE on Friday was Rs 4,229 crore. On NSE, the turnover was Rs 7,064 crore, lower than Rs 8,675 crore on Friday.

Economic news

The rupee gained 0.4% to 40.7125 against the dollar today. Meanwhile, India''s 10-year bonds gained for a third straight day after the government stated that there were fewer debt sales this week than last. The yield on the 7.49% bond due April 2017 shed 8 basis points, or 0.08%, to 8.20% as of to date.

The Central Board of Direct Taxes, or CBDT, announced its latest circular on Friday, 15 June 2007, after trading hours. The circular failed to clarify any further the tax on profit/gain coming from sale of shares.

Trading highlights

Time Technoplast was the most-active stock with a turnover of Rs 217 crore followed by Nestle and Reliance Industries.