Financial stocks may also draw attention, as further weakness is expected from the bankruptcy of New Century Financial Corp. (NEW: chart), the biggest mortgage lender to collapse in the slumping U.S. housing market. Tax preparer H&R Block (HRB: chart) whose subsidiary Block Financial was given an unstable outlook from Moody''s Investors Service is also expected to come under pressure. Apple (AAPL: chart) and Warner Music (WMG: chart) were in the spotlight as the European Commission charged them, among others, with breaking antitrust rules by limiting access to music downloads by country. S&P 500 futures improved 6.30 points to 1,439.60 and Nasdaq 100 futures climbed 8.25 points to 1,798.25. Dow industrial futures hiked up 44 points to 12,493.


[R]8:15AM The European Commission charged Apple with breaking antitrust rules.[/R]
Apple (APPL: chart) and leading record companies were charged by the European Commission with breaking antitrust rules. It objected to the territorial restrictions applied to online music sales.

The E.C. issued a ‘statement of objections’ which gives respondents two months to defend themselves in writing. The commission claims that Apple and the major record companies like the joint venture between Sony (SNE: chart) and Bertelsmann, the Universal Music arm of Vivendi , Warner Music (WMG: chart) and EMI Group are limiting consumers’ access to music downloads by country. On condition that the companies are found guilty, they are subject to paying a fine of up to 10% of annual global revenue.

Apple rejected the accusations, stating that they did nothing to violate E.U. law. The company said they will continue to work with the E.U. to resolve the problem. EMI said it doesn''t believe it has violated European law. Apple and EMI on Monday announced a pact to sell music without that protection.


[R]8:00AM NY-7:00PM Mumbai Sensex recovers Tuesday in an across-the board rally.[/R]
The Sensex on BSE finished 169.21 points, or 1.36%, higher at 12,624.58. The market-breadth was slighlty positive as 1,390 stocks advanced, while 1,040 declined and only 88 stocks remained unchanged. Of the 30 stocks in the Sensex, 25 stocks advanced, while the rest declined. The turnover on BSE was Rs 2,880 crore, compared with Rs 2,924.08 crore on Monday. On NSE, the turnover was Rs 6,745.48, slightly lower than Rs 6,866.85 crore on Monday.

Economic news

The Securities and Exchange Board of India, or SEBI, has published a consultative paper on regulation of investment advisers that include, banks, chartered accountants, tax consultants, certified financial planners and the media.

The High Powered Expert Committee looking into issues necessary to make Mumbai an international financial centre has stated six advantages that India has in creating such a centre. The committee has also added that the country has witnessed rapid GDP growth and more growth of cross-border flows on both the current and the capital accounts.

Trading highlights

Reliance was the most-active stocks with a turnover of Rs 112.20 crore followed by Renuka Sugar and Indiabulls.

Advancers

BHEL and NTPC surged over 4.5% each to Rs 2,254 and Rs 154, respectively. BHEL reported net profit rose 42% in fiscal year 2007, to Rs 2385 crore from Rs 1679 crore in fiscal year 2006. The company announced a target of 10 billion dollars, or about Rs 44,000 crores, turnover by 2011-12. Wipro soared more than 3% to Rs 534.2, after investing Rs 375 crore at the Pune facility, increasing capacity from 6,300 to 17,000 seats. The facility focusses on developing solutions for banking, insurance, and telecom industries.

Infosys Technologies advanced 2.2% to Rs 1,964, while TCS rose 1.28% to Rs 1,204 and Satyam Computers moved 2.8% higher, at Rs 459. Tata Steel gained 1.2% to Rs 429, after completing its $12 billion acquisition of Corus Group. Tata Steel paid 608 pence per ordinary share in cash.

Tata Motors gained 1.8% to Rs 681.1, after announcingon Monday vehicle sales in March rose 11% to 62,779 units from 56,406 units a year earlier. Sales of commercial vehicles increased 13% to 30,720 units, its highest monthly sales to date, from 27,289 units, while sales of cars and utility vehicles rose 14% to 25,760 units, also the highest monthly sales.

Index heavy Reliance Industries gained 1.90% to Rs 1,338.50, having advanced from a low of Rs 1,309.55, to a high of Rs 1,346.

Decliners

Cipla led the large-cap decliners today, down 0.8% to Rs 224, while HDFC was 0.6% lower to Rs 1,424. Bajaj Auto sank 0.5% to Rs 2,289.5 and SBI was 0.4% off to Rs 927.