[R]10:30AM Sustained buying in large-cap stocks raised the Sensex on Wednesday.[/R]
The Indian Sensex ended with a spurt of 124.53 points, or 1.16%, on 10,876.19. The benchmark index traded in the range of 161 points, between the high and low of the day. The market-breadth was firm. In today’s trading 1,517 shares advanced on BSE, only 876 declined and 94 shares were unchanged. The turnover on BSE was Rs 2,657 crore, higher than the turnover on Tuesday of Rs 2,203 crore.

Tata Motors led the gainers, moving up 3.68%, to Rs 759.50. Tata Motors reported on Tuesday that vehicle sales advanced 44.5%. Tata Steel also advanced 3.65% to Rs 513.85 on 16.74 lakh shares as well as NTPC gaining 3.48% to Rs 120.10 on 10.26 lakh shares. BHEL gained 2.21% to Rs 2,150 on 3.63 lakh shares, soaring earlier to a high of Rs 2,188, as buying intensified.

Large-cap Reliance Industries advanced 0.77% to Rs 989.50 on 17.28 lakh shares. It had recovered sharply form a low of Rs 979.20, as buying resumed. Reliance Retail is planning to set up 23 retail shops in Punjab at an investment of $107 million over the next six months. Reliance Industries was the most-actively traded stock on BSE with a total turnover of Rs 170.31 crore followed by Tata Steel with a turnover of Rs 84.30 crore.

Cement shares also performed well on strong buying demand. Saurashtra Cement was up 4.55% to Rs 62, Shree Cements gained 3.71% to Rs 942.20, Gujarat Ambuja Cements advanced 2.81% to Rs 106, JK climbed 2.40% to Rs 156, Birla Corporation notched up 2.40% to Rs 263.40 and ACC gained 1.56% to Rs 867.55.

Decliners were led by a loss of 1.04% in Maruti Udyog to Rs 775, Hindustan Lever off 0.46% to Rs 227.70 and ICICI Bank declining 0.36% to Rs 547. Grasim shed 0.38% to Rs 2,072.00 and HDFC Bank lost 0.03% to Rs 780.50.

Among other stocks, tractor & utility vehicles large-cap Mahindra & Mahindra gained 2.38%, to Rs 599 after the company posted 39% growth in vehicles sales for July. Granules India jumped 20%, to Rs 88.20 on 2.89 lakh shares. ABG Shipyard gained 7.15%, to Rs 240 on registering 96% surge in Q1 June 2006 net profit, HCL Technologies spurted 3.76%, to Rs 535.25 and Goodyear India soared 11.70%, to Rs 85 on registering 83% growth in net profit for the Q2 June 2006.


[R]9:45AM Stocks opened in the positive, despite rising oil.[/R]
Stocks showed some strength at opening on better-than-anticipated results from Time Warner, although climbing oil prices limited early gains. Time Warner (TWX: chart) rose 3% on $1 billion profit in Q2. Procter & Gamble (PG: chart) climbed 4% on 36% profit rise in Q4. Tech shares were leading gainers in early hours after software maker Adobe Systems Inc. (ADBE: chart) affirmed its quarterly outlook and navigation products company Garmin Ltd.''s (GRMN: chart) profit beat forecasts. Shares of Adobe Systems climbed 12%, while Garmin''s gained 5%. Cognizant Technology Solutions (CTSH: chart) rose 6% after reporting Q2 profit rise of 37 cents a share from 25 cents a share a year ago on 59% revenue jump.

Ford Motor Co. (F: chart) gained 2.9% on reports that the company launched a strategic review of ailing business units that could lead to a sale of those divisions or broader strategic alliances with other automakers. General Motors (GM: chart) after the close on Tuesday revised its Q2 results, widening its loss by $200 million to reflect a change in the estimated tax provision relating to its pending sale of a majority interest in its GMAC financing unit. Philips Electronics (PHG: chart) rose 4% in Amsterdam after it reportedly agreed to sell its semiconductor making unit to Kohlberg Kravis Robert and Silver Lake Partners. Blue Nile (NILE: chart), online jewelry retailer, jumped 31% on strong quarterly earnings. In midmorning trading, the Dow Jones industrial average rose 53.95, or 0.48%. The Standard & Poor''s 500 index climbed 6.06, or 0.48%, and the Nasdaq composite index gained 17.28, or 0.84%. Bonds were stuck in a narrow trading range for the third straight day, with the yield on the benchmark 10-year Treasury note rising slightly to 4.99% from 4.98% late Tuesday.


[R]9:00AM Stock futures pointed to a strong opening on P&G, Time Warner.[/R]
U.S. stock futures pointed to a bullish start on Wednesday, with Time Warner and Procter & Gamble reporting higher-than-expected quarterly results. Technology shares are also expected to move higher as software maker Adobe Systems Inc. (ADBE: chart) affirmed its quarterly outlook, helping to ease investors'' concerns about tech companies after several high-profile disappointments.

Time Warner Inc. (TWX: chart), the world''s largest media company, posted a Q2 profit of $1 billion in contrast to a loss of $409 million a year earlier, citing cable TV business growth. Revenues edged up 1% to $10.7 billion. Procter & Gamble (PG: chart) said its Q4 profit grew 36% to 55 cents per share from 52 cents per share last year on 25% revenue increase. Shares of Adobe rose 4.2% in Europe. Video game publisher Electronic Arts Inc. (ERTS: chart) could also lend support, a day after it posted a smaller-than-expected loss and said this quarter''s revenue should top analyst estimates. S&P 500 futures were up 2.70 points, above fair value. Dow Jones industrial average futures rose 33 points, and Nasdaq 100 futures were up 6.25 points.

Allied Capital, (ALD: chart), management investment company, reported that its Q2 net income fell to 24 cents a share from $2.29 a share a year ago. Net investment income per share came to 35 cents versus 11 cents a year ago.

MasterCard Inc, (MA: chart), global payment solutions company, reported it lost $2.30 a share, compared to net income of 89 cents a share in the year-ago period. If not for items, earnings in the latest period were 74 cents a share. Revenue advanced 9.7%. The company beat analysts’ forecasts for earnings of 62 cents a share. Expenses jumped 93.4%, to $1.1 billion due to spending on its 2006 World Cup sponsorship as well as a contribution to the MasterCard Foundation and increased personnel costs.

PG&E Corp, (PCG: chart), gas and electric utility, reported its Q2 net income fell to 65 cents a share, from 70 cents a share in the year-earlier period. Revenue at the company rose more than 20% to $3.02 billion from $2.5 billion. The company topped analysts’ forecasts for earnings by a penny.

Clorox Co, (CLX: chart), consumer products company, reported Q4 profit fell, as the company raised prices to offset soaring commodity costs. The company earned 92 cents a share, down from $1 a share in the year-ago period. If not for costs related to stock-based compensation and severance charges, it earned $1.03 a share. Results also included a 5 cents a share charge related to the retirement of Chairman and Chief Executive Jerry Johnston. Net sales advanced to $1.32 billion from $1.25 billion. The company missed analysts’ expectations for it to earn $1.04 a share.

The Brink''s Company, (BCO: chart), transportation, teller machine servicing, currency and deposit processing company, reported Q2 net income doubled to 62 cents a share, from 27 cents a share in a year-ago period. Operating income was 42 cents a share, up from 4 cents a share in the year-ago period. Revenue grew to $697.5 million from $633.5 million. The company beat by wide margin analysts’ forecasts for earnings of 49 cents a share.

Gerdau Ameristeel Corp, (GNA: chart), steel producer, reported Q2 earnings rose to 41 cents a share, from 24 cents a share a year earlier, topping analysts’ expectations for earnings of 35 cents a share. Revenue rose to $1.21 billion from last year''s $961.1 million, with shipments of finished steel growing 13% and average mill prices rising 9.8%.


[R]8:00AM $10.26 billion offer for Philips Electronics NV''s chip unit.[/R]
Kohlberg Kravis Roberts & Co. and Silver Lake Partners are reportedly close to a deal with Philips Electronics NV''s chip unit. In its online edition the Wall Street Journal said the deal may be worth more than eight billion euros, or $10.26 billion, citing people familiar with the matter.