IT large-cap TCS led the advance, gaining 2.97% to Rs 1,106.50, after block deals for a total of 85.05 lakh shares were struck on BSE, at an average price of Rs 1,075.50 in early trade.

Infosys gained 2.32% to Rs 2,211. The stock had surged to an all-time high of Rs 2,225. On Monday, the Infosys ADR had jumped 3%.

Other IT large-caps participated in the rally including, Satyam Computers advanced 1.30% to Rs 431.10 and Wipro gained 0.93% to Rs 547. Satyam Computer ADR rose 3.29%, while Wipro ADR added 1.89%.

ICICI Bank gained 2% to Rs 857.45, extending its recent surge, after striking a record high of Rs 861. The stock is trading at record levels on expectations that earnings growth will last.

Refinery shares advanced as oil price slipped for the second day running. BPCL rose 1.07% to Rs 367.20 and HPCL added 2.42% to Rs 306.50 as crude oil prices stabilised, below $60 per barrel.

Chemicals and pesticides maker United Phosphorus soared 5.25% to Rs 306.65. Media rumors speculate that it will buy a crop protection firm in western Europe.

Real estate developer Unitech surged 5% to Rs 447.20, continuing its recent surge with pending buy orders for 4.16 lakh shares at the 5% upper limit in the stock on BSE.

Decliners

Bucking the market trend were metal producers, which dipped under selling pressure. A sharp decline in metal prices on the London Metal Exchange sparked the decline. Hindustan Zinc led the decline among metal shares, down 4.87% to Rs 861.25. Sterlite Industries was off 0.91% to Rs 534, Hindalco lost 1.87% to Rs 178.50, Tata Steel shed 1.39% to Rs 490.25, SAIL dipped 2.05% to Rs 84, and Hindustan Copper declined 2.77% to Rs 86.

Power generation company NTPC led the decliners, down 2.14% to Rs 135. Hindustan Lever lost 2.05% to Rs 247.50, as it traded in a range of Rs 245.05 – Rs 254. Dr Reddy’s Lab lost 0.74% to Rs 789.20, after the company on Monday applied to the U.S. regulators to sell 13.5 million ADRs. Other decliners included Gujarat Ambuja falling 1.53% to Rs 134.80 and Hero Honda shedding 1.27% to Rs 706.05.

Index heavy Reliance Industries recovered slightly from the low of the day of Rs 1,273 and finished with a loss of 0.83%, at Rs 1,276.10. Tulip IT Services lost 1.91% to Rs 379, after it contradicted media claims about winning a large order worth Rs 102 crore IT project from Haryana government.


9: 45AM Stocks opened mixed on economic reports.
Stocks were mixed at opening Tuesday, reflecting economic reports which signaled inflation is slowing and consumer spending is stronger than anticipated. Retailers reported mixed Q3 results. Wal-Mart Stores Inc. (WMT: chart) said it had a strong 11.5% gain in profits despite weak sales figures. The world's largest retailer cut slightly its forecast for the full year. The stock opened up 3.6%. Target (TGT: chart), discount retailer Target, said Q3 profit rose 16%, helped by 11% sales increase. The retailer posted profit rise of 59 cents per share, up from 49 cents per share last year, beating expectations of 55 cents a share. Target said its revenue rose to $13.57 billion from $12.21 billion last year and reported a 4.6% same-store sales rise. At the same time, Home Depot (HD: chart) lost 1.5% after the retailer posted a 3.1% Q3 profit drop on a sharp decline in same-store sales.

Housing stocks extended gains posted in the two previous sessions. D.R. Horton (DHI: chart) helped to lead the sector higher, with the home builder rising 6.2% after the company reported Q4 results that fell year-over-year but still came in above analyst estimates. Some biotechnology stocks came under pressure, with MedImmune (MEDI: chart), Affymetrix (AFFX: chart), and Millennium Pharmaceuticals (MLNM: chart) posting notable losses.

Among stocks, driven by analyst comments, Tessera Technologies (TSRA: chart) fell 2.6% after First Albany downgraded its rating on the semiconductor equipment maker to neutral from buy. Meanwhile, shares of Equity Residential (EQR: chart) rose 1.2% after Friedman, Billings, Ramsey upgraded its rating on the multifamily REIT to market perform from underperform. In the first hour of trading, the Dow Jones industrial average rose 12.17, or 0.10%, to 12,144.05. The Standard & Poor's 500 index climbed 1.69, or 0.12%, to 1,386.11, and the Nasdaq composite index fell 0.77, or 0.03%, to 2,405.61.


Retail sales edged down 0.2% in October.
The Department of Commerce released its report on retail sales in the month of October on Tuesday, showing that sales fell less than economist had expected. Retail sales fell a little more than expected excluding auto sales. The report showed that retail sales fell 0.2 percent in October following a revised 0.8 percent decline in September. Economists had expected sales to fall 0.4 percent, which would have matched the decrease originally reported for the previous month.

The decrease in sales was due in large part to a drop in sales at gas stations, which fell 6.0 in October after an 11.1 percent decline in September. A drop in gasoline prices contributed to the decline in gas station sales. Retail sales rose 0.4 percent excluding gas station sales. While sales at furniture and home furnishings stores, building material and garden equipment stores, and department stores also fell, sales at food and beverage stores and health and personal care stores showed notable increases. The report showed that sales by motor vehicle and parts dealers also increased, rising 0.6 percent in October following a 0.7 percent increase in September. Excluding auto sales, retail sales fell by 0.4 percent in October after a revised 1.2 percent decline in September. Economists had expected ex-auto sales to fall 0.3 percent compared to the 0.5 percent decrease originally reported for the previous month.


9:30AM The FTSE 100 gains slightly in afternoon trading on miners, M&A.
At 2:30 GMT, the FTSE 100 in London is 1.90 points, or 0.03% higher, at 6,196.10.