Banks and telecoms buoyed South Korea. The Kospi Index in Seoul advanced 0.6% to 1,895. An upward revision of the country’s gross domestic product by the Bank of Korea to 4.5% from 4.4% also boosted the rally. Kookmin Bank gained 2.2% and Shinhan Financial Group closed 5.7% higher.

In China, gains from the banking sector were pared by profit-taking. The benchmark Shanghai Composite Index retreated 0.8% to settle at 3,853. Youngor Group dropped 1.5% and Shanghai Automotive lost 3.2%, while ICBC ended 1.7% higher and China Merchants rallied 7.5%.

In Sydney, resources stocks declined on profit-taking, erasing some of the gains they have won in recent sessions. Australian S&P/ASX 200 shed 0.6% to 6,362. In copany news, BHP Billiton shed 1% after advancing 3.5% on Monday, while Rio Tinto inched 0.1% higher. Lead and zinc company Zinifex plunged 3.9%.


7:30AM NY-6:30PM Mumbai Sensex sheds 36 points, Tata Motors rallies, the rupee advances.

The Sensex on BSE finished 35.85 points lower, or 0.24%, at 15,009.88.

The benchmark index opened 54 points higher at 15,100.13 and rallied to a record high of 15,114.95 in morning trading, a gain of 69.22 points for the day. It dropped to a low of 14,966.40 in early afternoon trading.

The market-breadth was positive in the morning, but turned negative in the latter part of the session. In the broader market 2,710 stocks traded on the market, 1,170 advanced, while 1,467 declined and only 73 were unchanged. Of the 30 stocks in the Sensex, 14 advanced, while 16 declined. The turnover on BSE was Rs 5,024 crore, higher than Rs 4,845 crore on Monday. On NSE, the turnover was Rs 10,720 crore, compared to Rs 9,762 crore on Monday.

Economic news

The Indian rupee edged higher towards a nine-year high on speculation that overseas funds will buy more local equities as the economy expands. In early trade, the rupee stood at 40.39 per dollar, up from 40.423 on Monday, and close to a nine-year high of 40.28 struck in late May 2007.

Trading highlights

ICRA was the most active stock with a turnover of Rs 186.50 crore followed by Orbit Corporation and DLF.

Tomorrow might be a crucial day for the markets with all eyes set on the Infosys as the company releases its Q1 results.

Advancers of the Day

Tata Motors rallied 4% to Rs 745 and was the leading gainer on reports that the company may list its profit-making arms.

Auto shares surged on expectations that the RBI will not raise interest rates in near future, as 50% to 75% of sales in the auto sector are derived from loan funds. Maruti surged 2.4% to Rs 813. Mahindra & Mahindra advanced 1.2% to Rs 788 and Bajaj Auto ended up 1.1% to Rs 2,128.

IT stocks also rallied, as the market considered the IT sector performance as being underestimated recently, given the strong core potential of the tech shares. Infosys advanced 1.3% to Rs 2,020. Satyam added 1% to Rs 497.

Infosys Technologies is expected to earn in the first quarter ending in June at least Rs 980 crore, a 4% decline in earnings on 2% rise in revenue from the previous quarter. The company profits are expected to jump 25% in the quarter from a year ago. In the first quarter a year ago company reported earnings of Rs 800 crore. The company is expected to lower its annual earnings guidance for the fiscal year.


Decliners of the Day