The entertainment and media industry in India is likely to grow at 18% compound annual growth rate and reach a projected size of Rs 1,00,000 crore by 2011 from its present size of Rs 43,700 crore.

Trading highlights

MindTree was the most-active stock with a turnover of Rs 157.70 crore followed by Reliance Communications and AMD Metplast.

Advancers

Ranbaxy led the advancers, soaring over 6% to Rs 336.4 as reports circulate that the company has withdrawn its bid for Merck generics business. The company exited the race on concerns that the acquisition would not add to earnings.

Reliance Energy surged 4.1% to Rs 476.1 and index heavy Reliance Industries gained 0.5% to, Rs 1,321.05 on market rumors it may sign a joint venture with US-based Dow Chemical Co. Bank shares added on short-covering in the derivatives segment. HDFC Bank gained 3% to Rs 954 and State Bank of India rose 2.6% to Rs 953.

Cement shares advanced on reports that the government may offer a five-year tax break to cement plants set up after April 1 2007. Grasim gained 4% to Rs 2,124, Gujarat Ambuja Cements gained 3.4% to Rs 110.9 and ACC was up 0.3% to Rs 742. Hindustan Lever added 2.1% to Rs 184 and Cipla gained 2.5% to Rs 230

Decliners

BHEL dropped 1.7% to Rs 2,044. Infosys slipped 1.5% to Rs 2,054. The increase of the rupee pushed down IT shares as their derive their revenue mostly in dollar terms. Wipro shed 1.4% to Rs 571.25 and TCS shed 0.6% to Rs 1252.3. TCS and Wipro gyrated between positive and negative territory during the day.

Tata Steel was down 1.3% to Rs 424 and Hero Honda lost 0.8% to Rs 635.30. Reportedly, Honda Motorcycle & Scooters India, a wholly-owned subsidiary of Japanese company Honda, proposes to entry-level 100-cc motorcycle segment and will be tough competition.


8:00AM European shares were lower Tuesday despite gains in banking stocks.
European markets were lower on Tuesday. By mid morning, Frankfurt Xetra Dax fell 0.2% to 6,659.09, the CAC 40 in Paris was off 0.4% at 5,437.67 and London FTSE 100 edged 0.1% higher to 6,196.2.

Advancers

Dutch bank ABN Amro gained 3.5% after confirmation of the merger talks with Barclays. The two companies said they were in exclusive primary discussions over a merger that could value the combined bank at 80 billion or 117 billion euros. Shares in Barclays rose 4.4%.

German sports car maker Porsche gained 3.1% after upgrades from both Morgan Stanley and Lehman Brothers. Morgan Stanley raised its price target on Volkswagen after the company strong results, particularly from its Audi division. Shares in VW gained 1%. Among mining stocks, BHP Billiton was also generally stronger, up 1.4%, supporting the UK benchmark index.

Decliners

The energy sector pushed market lower, after crude fell below $57 a barrel. Royal Dutch Shell fell 1%, while France Total shed 0.9% and Italy’s Eni lost 1 %. Chemicals group Lanxess lost 1.4% after its sales dropped 2.9% to 6.94 billion euros in 2006. The company posted a profit in 2006 of 197 million euros.

Deutsche Post, the German mail and logistics group, fell 5.8% after forecasting a 7 % fall in operating profit for 2007. Friends Provident the U.K. provider of life insurance, pension products, and asset-management services, declined 5% after it reported that 2006 pretax profit fell 34% and underlying pretax profit fell 3%.

Oil and gold

Oil prices rose but were hovering just under $57 a barrel Tuesday as traders responded to a drop the day before and looked for market drivers. Crude oil for April delivery rose 37 cents to $56.96 a barrel in electronic trading on the New York Mercantile Exchange. The April contract, which expires Tuesday, fell 52 cents the day before amid expectations of rising crude stocks. On London ICE Futures exchange, May Brent crude gained 32 cents to $60.84 a barrel.