Reliance Communications reported 77% increase in earnings to 837 crore rupees on 18% increase in revenue to 3,229 crore rupees.

Capital goods maker Bhel jumped 4.9% to 1,734 rupees and Larsen & Toubro gained 7.2% in the session. ABB India and Crompton Greaves surged in the rally by 7% as well. Bhel reported first quarter earnings of 289 crore rupees an increase of 22% from a year ago.

Reliance Industries jumped 2.4% to 1,893 on the news that the company is in the process to acquire regional natural gas distribution network of Adani Group in Gujarat.

Cement stocks gained in the rally led by India Cements surge of 8% followed by Ultra Tech Cement advance of 4.4%, and ACC increase of 3.3%. In the housing sector HDFC jumped 5.6%.

Metal stocks jumped in the rally on higher copper prices in international trading. Sterlite Industries and Hindustan Zinc jumped 6% followed by 4.4% gain in Jindal Steel & Power.

Stock split news left several stocks volatile in the day. Unitech jumped 4.7% on bonus issue of one share per share but Valecha Engineering fell 6% after the company issued one bonus share of every 2 shares held.

Decliners

Weak earnings left Mahindra & Maahindra lower 2.8%, a decline for the second day in a row. Hindustan Unilever fell 1.3% and Tata Motors declined 1.2%. Jindal Drilling & industries declined 2% after the company board meeting. The expected stock split announcement was rescheduled to the next meeting.


09:45AM Wall Street rallied, boosted by tame inflation and strong earnings.

Wall Street rallied at opening Tuesday, benefiting from stronger-than-forecast earnings from Sun Microsystems and Dow component General Motors, as well as news of tame inflation in June. The core personal consumption price index rose 1.9%, marking the lowest inflation in three years. However, June personal spending disappointed a little, showing a weaker-than-expected increase of 0.1%. The Dow Jones industrial average gained more than 100 points.

On the earnings news front, Sun Microsystems (SUNW: chart) surged 7.6% after it swung to profit of $329 million, due to reduced operating expenses. A reverse to profit in Q2 also sent General Motors (GM: chart) higher. The automotive giant rose 3.7% after it said both earnings and revenue beat analyst expectations.

Merger-and-acquisition activity was also in the spotlight, providing support to the market sentiment. Billionaire investor Nelson Peltz''s Triarc Cos. said he is considering a bid of $37 to $41 a share to buy Wendy''s International Inc. Dow Jones & Co. (DJ: chart) and Rupert Murdoch''s News Corp. (NWS: chart) are reportedly closer to striking a deal.

On other corporate news, Johnson & Johnson (JNJ: chart) added 2% after it said it will cut up to 4% of its global work force to save as much as $1.6 billion before tax by next year. Verizon Communications (VZ: chart) rose 3.4% after UBS upgraded the telecom operator to buy from neutral.

In early trading, the Dow Jones industrial average rose 104.53, or 0.78%, to 13,462.84, after gaining more than 100 points at the market''s open. The Standard & Poor''s 500 index was up 10.23, or 0.69% at 1,484.14, and the Nasdaq composite index was up 16.77, or 0.65%, at 2,600.05. Bonds were little changed, and the 10-year Treasury note''s yield was at 4.81%, the same as late Monday.


9:00AM U.S. stock futures pointed to a higher opening on strong earnings from GM and Sun Microsystems.

U.S. stock futures pointed to a second consecutive session of gains Tuesday, boosted by optimism over corporate profits after General Motors and Sun Microsystems released better-than-expected quarterly earnings. GM (GM: chart) rose 6.4% on 27% adjusted profit rise in Q2, helped by overseas sales. Sun Microsystems (SUNW: chart) rallied 10% after the company swung to profit of $329 million, due to reduced operating expenses.

In other corporate news, Alcatel-Lucent (ALU: chart) tumbled 9.4% in the pre-opening hours after the telecom equipment maker posted a $813 million loss and refused to provide profit guidance. Johnson & Johnson (JNJ: chart) announced it will cut up to 4% of its global work force in order to save as much as $1.6 billion before tax by next year.

Inflation concerns were somewhat relieved after the Commerce Department said that the core personal consumption price index rose 1.9%, marking the lowest inflation in three years. However, June personal spending disappointed a little, showing a weaker-than-expected increase of 0.1%. The stock gained 2% in the pre-open. S&P 500 futures rose 12.6 points at 1,493.30 and Nasdaq 100 futures climbed 13.75 points at 2,007.00.