12:00PM European shares closed higher, boosted by oil and tech companies.
European stock markets finished higher, supported by gains for oil and technology companies which helped offset weakness sparked by disappointing earnings for Philips Electronics. The Dutch consumer electronics closed down 1.1%. Main European markets traded above a five-year high for a second straight session, led by oil and mining stocks. Shares of BP advanced 1.4%, French Total gained 0.8%, while miner Lonmin gained 4.1%. Tech stocks also contributed to the general advance, with Infineon Technology rising 2.1% after Deutsche Bank upgraded its stock. The Italian bank sector continued consolidation as Banca Popolare Italiana said it had agreed to merge with Banca Popolare di Verona e Novara in a deal that will create Italy''s third-largest retail bank in terms of the number of branches. The German DAX 30 closed up 0.2%, the French CAC 40 rose 0.2%, and London FTSE 100 gained 0.3%.


11:30AM Stocks recovered, helped by Alcoa and Alcan.
U.S. stocks rebounded from earlier declines as gains for Alcoa Inc. and IBM helped the Dow Jones Industrial Average recover from early weakness caused by broker downgrades for General Electric Co. and Home Depot Inc. Alcoa (A: chart) rose 1.5% after Prudential Equity Group raised its rating on the aluminum maker and its Canadian rival Alcan Inc. (AL: chart) to overweight from neutral. The broker raised its 2006 through 2009 aluminum price targets, citing better-than-expected 5.5% 2006 demand growth. Alcan shares gained 1.5%.

Investors were looking for signals that earnings continued to grow during the third quarter. Earnings reports released Monday morning were mixed. Wachovia Corp. (WB: chart) reported Q3 profit increase of 13%, but revenue missed forecasts. Its shares fell 3.1%. Toy maker Mattel Inc. (MAT: chart) exceeded analyst projections due to sales rise. The company’s shares rose 5%. Charles Schwab Corp.(SCHW: chart), the nation''s largest discount brokerage, reported quarterly profit surged 29% on lighter-than-expected revenue. However, the company''s overall revenue disappointed, sending company’s stock down 1.1%.

In merger-and-acquisition news, Oshkosh Truck Corp.(OSK: chart), military and commercial vehicle maker, announced it would acquire JLG Industries Inc., a maker of aerial work platforms and booms, for about $3 billion in cash. Oshkosh fell 6%, while JLG (JLG: chart) surged 33%. In late morning trading, the Dow Jones industrial average rose 2.16, or 0.02%. The Standard & Poor''s 500 index rose 0.65, or 0.05%, and the Nasdaq composite index rose 5.75, or 0.24%. Bonds declined, with the yield on the benchmark 10-year Treasury note dipped to 4.79% from 4.80% on Friday.


10:30 AM The Sensex touches the 13, 000 level, spurred by earnings expectations.
The Sensex on BSE finished 191.76 points, or 1.5% higher, to close at 12,928.18. The market-breadth wa negative though with 1,090 shares that advanced, 1,436 that declined and 55 shares which remained unchanged. The decliners outpaced advancers by 4:3. From the 30-issue Sensex, 22 advanced, while the rest declined. The turnover on BSE was Rs 3,479.74 crore, lower than Rs 4,071 crore on Friday. The turnover on NSE was Rs 7,438.48 crore.

Economic news

India should work to become the second or third largest partner for EU from the present position of being 10th largest partner and should contribute to at least 5% of total EU trade by 2011, according to the Confederation of Indian Industry.

The Indian rupee continued its climb and closed at a five-month high against the US dollar. The Indian currency changed course and gained as large dollar inflows poured into the market.

Most active

Reliance Industries was the most-active stock on BSE. Reliance Industries was the most active stock on BSE today, followed by Infosys and Hindustan Zinc.

Advancers

HDFC Bank led the advancers today. It gained 5.39% to Rs 1,042, Hindalco advanced 4% to Rs 182.20, ICICI Bank moved up 1.03% to Rs 720, TCS jumped up 2.73% to Rs 1,134.90 and ITC rose 2.72% to Rs 194.15. HDFC Bank stock hit Rs 1,068, an all-time high for the stock. ICICI Bank surged as it declares second-quarter results on 24 October 2006.

Index heavy Reliance Industries jumped 1.8% to Rs 1,212. The stock hit Rs 1,218.75, an all-time high for the stock. It announces second-quarter results on 19 October 2006.

TCS gained nearly 3% to Rs 1,134.65 ahead of its second-quarter results today. The stock declined from a high of Rs 1,148. analysts have forecast between 5.2 - 10.7% sequential growth in TCS net profit as per US GAAP, to between Rs 907.70 crore - Rs 954.60 crore.

Software large-cap Infosys Technologies, ended 0.4% higher to Rs 2,097, but trimmed gains. The stock declined from the session high of Rs 2,143.90. Wipro rose 2.4% to Rs 571 and Satyam Computer gained 2.6% to Rs 438.

Cellular services large-cap Bharti Airtel gained nearly 2% to Rs 487.10. Hindustan Zinc rose almost 4% to Rs 745, after the company said it had raised zinc price by Rs 1,800 per tonne (0.91%), to Rs 1,97,800 a tonne.

Other advancers included copper and aluminum company Hindalco Industries which jumped 4% to Rs 182.35. Engineering & construction large-cap L&T advanced nearly 3% to Rs 1,304. L&T announces second-quarter results on 19 October 2006. Oil exploration large-cap ONGC rose 1.8% to Rs 1,175.

Decliners