10:30AM The Sensex surges on the back of strong buying in large-caps.
The Sensex on BSE finished 186.06 points, or 1.3% higher, at 13,616.77. The market-breadth was very strong throughout the trading session, as the ratio between advancers and decliners was five to two. As 1,794 stocks advanced on BSE, 719 declined and 70 remained unchanged. The turnover on BSE was of Rs 4,041 crore, slightly lower than Rs 4,260 crore on Monday. The turnover on NSE was of Rs 9,098.66 crore, compared to Rs 9,628.51 crore on Monday. Of the Sensex index listed 30 stocks, 27 advanced, while the rest declined.

Economic news

India and China on Tuesday signed thirteen agreements, including one facilitating two-way investment flows and another for streamlining iron ore exports from India, as part of efforts to take bilateral ties to a higher orbit.

The number of telecom subscribers in India will reach a stunning 250 million by end of 2007 as the competition in the segment intensifies with aggressive expansion plans of regional and global players, according to a report.

Most active

Debutant Info Edge led the value chart with a turnover of Rs 465 crore followed by Mahindra Gesco, and Infosys.

Advancers

Cigarette maker ITC led the advance, surging 3.3% to Rs 184.35. Hindustan Lever advanced 2.2% to Rs 248.35. Bharti Airtel was among the main gainers, rising nearly 3% to Rs 622.35. The stock hit an all-time high of Rs 625.70. Reliance Communications gained 1.8% to Rs 416.70. The stock also attained an all-time high of Rs 418.

IT large-caps were in focus for the second straight day, following reports that top Indian IT firms were after over a dozen deals on an average, the sizes of which range between $50 - $100 million. Satyam Computer advanced 3.2% to Rs 455, HCL Tech rose 3% to Rs 647, TCS rose 2.8% to Rs 1,148 and Wipro added 2.6% to Rs 569.

Tata Steel gained nearly 3% to Rs 476.85. Tata Steel has called an unscheduled board meeting on Thursday, to discuss the fallout of CSN counter-bid for Anglo-Dutch steelmaker Corus.

Shares in Info Edge, India, which runs web sites for job search and matrimony, closed at Rs 593.20, a premium of 85.3% over the IPO price (Rs 320). The stock attracted a huge volume of 78 lakh shares on BSE.

ICICI Bank rose 1.4% to Rs 872, on reports that the largest private sector bank is slated to raise $1 billion through an issue of yen-denominated bonds. Other banks also gained. State Bank of India edged 2% up to Rs 1,233. 30, Bank of India rose 1.6% to Rs 190, and Bank of Baroda moved 1% higher to Rs 258.20.

Auto shares advanced supported by the general upbeat note of the market. Car major Maruti Udyog rose 1.7% to Rs 885.25, Tata Motors gained 2% to Rs 819, Ashok Leyland added 3% to Rs 43.45 and Bajaj Auto advanced 0.4% to Rs 2,576.

Mahindra & Mahindra surged 2.7% to Rs 841, after the company announced on Monday it had signed a deal with Global Vehicles, US, to distribute sports utility vehicle of Mahindra and a pick-up in the US.

Cement shares gained on firm cement prices. ACC advanced 1.3% to Rs 1,071, Gujarat Ambuja Cements jumped 1.9% to Rs 136, and UltraTech Cement rose 1.3% to Rs 895.25. Reliance Industries moved up 1.3% to Rs 1,274, and Dr.Reddy''s added 1% to Rs 731.

Small-cap and mid-cap stocks surged, bucking the recent trend. Gainers in the small-cap and mid-cap stocks were Sika Interplant Systems soaring 20% to Rs 103.90, Shrachi Securities also up 20% to Rs 63.70, Development Credit Bank rising 20% to Rs 63.20, Mount Shivalik Industries increasing 20% to Rs 56.

Decliners

Infosys edged slightly lower in volatile trade. The scrip shed 0.5% to Rs 2,241. The software giant on Tuesday priced its sponsored ADR issue at $53.30 per ADR, a 3.2% discount to closing price of $55.2 on Monday. HDFC declined 1.03% to Rs 1,648.


9:45AM Stocks opened little changed. Google rallied on hitting $500
Stocks opened little changed Tuesday, with Boeing Co. supporting the Dow after the aerospace company received a $5.5 billion order for planes from Korean Air which is buying 25 passenger and freighter aircraft. Shares in Boeing (BA: chart) rose 78 cents to $89.90. The deal was seen as a victory for Boeing over rival Airbus. Google (GOOG: chart) rallied after it hit the $500 level for the first time. The stock was last up $10.16, or 2.1%, at $505.09. Medtronic (MDT: chart) was upgraded by a number of analysts after the company reported its quarterly profit came in above expectations. The stock jumped 7%. Some health insurance stocks posted strong gains, with shares of Sierra Health Services (SIE: chart) up 5.6% after Goldman Sachs upgraded its rating on the managed health care company to neutral from sell, saying that an acquisition of the company is a possibility.