Other indices around the region also gained. South Korean Kospi index added 0.9% at 1,642.88, Singapore Straits Times index climbed 0.7% to 3,539.82. Sydney S&P/ASX 200 bucked the uptrend and finished 0.5% lower at 6,338.8.


8:15AM Istar Financial agreed to pay $1.9 billion for Fremont General.

IStar Financial Inc. (SFI: chart) announced on Tuesday an agreement to pay $1.9 billion in cash to buy the commercial real estate lending business and an interest in the commercial real estate loan assets of Fremont General Corporation (FMT: chart). Under the terms of the agreement, iStar will acquire Fremont General's California-based commercial real estate lending business and will retain a 30% B-participation interest, with a $2.1 billion principal balance, in Fremont's $6.5 billion portfolio of commercial loan assets. On completion of the transaction, Fremont General will own a 70% A-participation interest in the portfolio. The deal is expected to close at the beginning of summer 2007..


7:30AM NY -6:30PM Mumbai Sensex edges higher amid volatile trading.

The Sensex on BSE finished Tuesday 35.12 points, or 0.24%, higher at 14,453.72.

The market-breadth was negative with small-cap index closing lower. For 1,116 stocks which advanced, 1,444 declined and only 91 stocks remained unchanged. Of the 30 stocks in the Sensex, 16 advanced, while the rest declined. The turnover on BSE was Rs 5,180 crore, compared to Rs 5,576 crore on Monday. On NSE, the turnover was Rs 11,375.26 crore, much higher than Rs 9,810 crore on Monday.

Economic news

The rupee traded at 40.5850 a dollar in late morning deals on dollar selling. The rupee advanced in the absence of any dollar demand from oil importing companies.

Indian companies are expected to invest Rs 8,974 crore on information technology in fiscal year 2008, which is an increase of 26% when compared with the expenditure of Rs 7,123 crore in fiscal year 2007.

Despite rising interest rates, the majority of the banks reported a considerable improvement in their asset quality on strong economic growth in the country. As a result of better monitoring of the credit portfolios and healthy macro-economic performance, most of the banks have succeeded in reducing their loans repayment defaults.

Trading highlights

Reliance Capital was the most active stock with a turnover of Rs 447 crore followed by Reliance Industries and Reliance Communications.

Advancers

HDFC rallied 4.5% to Rs 1,794. HDFC Bank gained 1.54% to Rs 1,120, ACC was up 1.55% to Rs 885 and Hero Honda rose 0.85% to Rs 686.25. Reliance Communications soared 3.4% to Rs 523.

BHEL rose 1.5% to Rs 2,676, on 1.35 lakh shares. The stock surged ahead of its record date of June 1 2007 for the proposed bonus issue of one share for every share held. Maruti and Bharti Airtel advanced over 1% each to Rs 830 and Rs 859, respectively.

Index heavy Reliance Industries finished 0.8% higher at Rs 1,775. Reliance has been striking record highs in the past three sessions and has gained over 34% since its close of Rs 1,313.50 on April 2 2007.

Decliners

Bajaj Auto led the decliners, down 2.4% to Rs 2,195. Bajaj Auto plunged 16% in the past two trading sessions after the surprise news that Allianz, partner in its two insurance ventures has a call option to buy up to 74% at a nominal price. Investors have been disappointed with this provision.