11:30AM Stocks rallied. Dell, Intel, Merck led market indexes higher.
U.S. stocks extended earlier gains into a solid advance on speculations that key economic data, due out this week, will show strength in the economy with tame inflation. A positive economic view of a Fed official along with a decline in the price of oil further lifted sentiment.

Intel (INTC: chart) was the leading gainer both on the Dow and the Nasdaq. Intel rallied 1.7% after Citigroup upgraded the chip sector. The semiconductor sector showed a significant strength, with National Semiconductor (NSM: chart), up 1.3%, Maxim Integrated Products (MXIM: chart), up 1%, and Novellus (NVLS: chart), 2.3% also contributing to the advance.

A 1.2% gain for Merck & Co. (MRK: chart) also contributed to the Dow's advance as the drug maker benefited from a regulatory setback for rival Novartis. The Nasdaq benefited from strong gains by some computer hardware, software, and internet stocks. Dell (DELL: chart) climbed 1.85% after Deutsche Bank raised its price targets on the personal computer giant.Among other gainers, Tyson Foods (TSN: chart) gained 4.6% after reporting a fiscal Q4 loss vs. a year-earlier profit, with lower revenue, in line with estimates.

Outside the tech sector, significant strength emerged among airline stocks on the back of weaker oil prices. At the same time, the price decrease contributed to some weakness among energy stocks. Similarly, gold stocks moved lower along with the price of gold. In late morning trading, the Dow Jones industrial average rose 55.15, or 0.46%, to 12,163.58. The Standard & Poor's 500 index was up 6.17, or 0.45%, to 1,387.07, and the Nasdaq composite index rose 16.58, or 0.69%, at 2,406.30. Bonds were weaker, with the yield on the benchmark 10-year Treasury note rising to 4.62% from 4.59% late Friday.


10:30AM Strong earnings and foreign fund inflows boost Sensex to new high.
The Sensex on BSE finished 116.09 points, or 0.87%, higher to end at 13,399. The market-breadth remained strong. As 1474 shares advanced on BSE, 1080 declined and 72 stocks were unchanged. From the Sensex stocks, 22 advanced, while the rest declined. The turnover on BSE was Rs 3,925 crore, higher than Rs 4,568 crore on Friday. The turnover on NSE was Rs 6,744.13 crore, lower than Rs 8,232.44 crore on Friday.

Economic news

Wheat sowing in India has picked up sharply, the farm ministry said on Monday, with farmers planting a million hectares more in the first month of the new season than in the same period last year.

The government on Monday signed an agreement with the U.S. Federal Aviation Authority to help it develop and modernise its nascent but booming aviation sector.

Most active stocks

Shyam Telecom was the most active stock with a turnover of Rs 114.35 crore followed by Jaiprakash Associates, Hindustan Zinc, Reliance Communications.

Advancers

NTPC led the advance. The company jumped 5.5% to Rs 137.85, while Reliance Energy rose 2.9% to Rs 536. Infosys rose 1.2% to Rs 2,165.30. The stock had advanced after shareholders recently approved the proposal for a sponsored ADR issue.

Cellular services large-cap Bharti Airtel rose 4.6% to Rs 569.10. Bharti Airtel said on Monday it was talking to Microsoft, to offer software and other services to small and medium scale businesses in India.

Reliance Communications rose 3% to Rs 403.50. The stock also hit Rs 404.40, a record high duriing the trading. RCL and state-run BSNL, have entered into an agreement enabling subscribers to access 1-800 numbers or toll free numbers provided by either operator.

Housing finance large-cap HDFC jumped 4.6% to Rs 1,565. Zee Telefilms rose 3% to Rs 341, after it bought 50% stake in Dubai-based Ten Sports TV channel. Tata Motors gained 2% to Rs 835. HDFC Bank rose 1% to Rs 1,055, and ICICI Bank gained nearly 1% to Rs 840.

Index heavy, Reliance Industries, failed to capitalise on the rally today. The stock was flat at Rs 1,287.15, and traded within a narrow range.

Jaiprakash Associates jumped 5% to Rs 671, extending its recent advance after a court order which paved the way for the land development projects of the company.

Forbes Gokak jumped 20% to Rs 565.50, after the company said it had constituted a committee of directors to examine possibilities of restructuring.

Decliners