The market held firm in mid-morning trade on continued buying demand for index pivotals. It opened strong today extending Fridays gains with Sensex racing past the 16,500 mark in opening trade. Market breadth was strong. IT and healthcare stocks gained while PSU oil firms declined. Global cues were mixed.

Indian manufacturing activity slowed a fraction in May 2008 to its lowest in 10 months, although output and new export orders rose, but input and factory gate prices increased, a survey showed. The ABN AMRO Bank purchasing managers' index (PMI) was a seasonally adjusted 57.4 in May 2008 after 57.5 in April 2008, significantly below its December 2007 reading of 61.9 which was the highest in the survey's three-year history.

At 10:20 IST, the 30-share BSE Sensex was up 137.35 points or 0.81% to 16,549.23. The index climbed 217.15 points at days high of 16,632.72, hit at the onset of trading session.

The broader based S&P; CNX Nifty was up 32.65 points or 0.67% at 4,902.75.

The market breadth was positive on BSE with 1261 shares advancing as compared to 880 stocks that declined. 63 stocks remained unchanged.

The BSE Mid-Cap index rose 0.51% to 6,794.89 and BSE Small-Cap index rose 0.74% to 8,189.68. Both these indices underperformed the Sensex.

IT stocks extended gains on the back of firm US dollar against the Indian rupee. Satyam Computer Services (up 2.6% to Rs 537.55), Wipro (up 1% to Rs 513.10), Infosys (up 1.35% to Rs 1984) and Tata Consultancy Services (up 1.03% to Rs 1039.90) edged higher.

Indias largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 0.97% at Rs 2425.

Healthcare stocks rose. Sun Pharmaceutical Industries (up 3.42% to Rs 220.50), Dr Reddys Laboratories (up 1.46% to Rs 725), Ranbaxy Laboratories (up 0.48% to Rs 531.20) edged higher.

Jaiprakash Associates (up 2.32% to Rs 218.15), State Bank of India (up 2.58% to Rs 1,480.60), ITC (up 2.23% to Rs 222.50), Maruti Suzuki India (up 2.03% to Rs 780), Larsen & Toubro (up 1.56% to Rs 3028) edged higher from Sensex pack.

Hindalco Industries (down 2.84% to Rs 186.50), NTPC (down 1.45% to Rs 169.75), Reliance Communications (down 1.16% to Rs 571), Ambuja Cements (down 0.68% to Rs 94.55) edged lower.

Bajaj Holdings rose 2.31% to Rs 654.15. Bajaj Auto posted a rise of 7.57% in its motorcycle sales to 179,649 units in May 2008 over May 2007.The sale of total two wheelers rose 6.86% to 180,935 units, in May 2008 over May 2007. The total two and three wheeler sale rose by 4.17% to 201,511 units in May 2008 over May 2007.

Indias largest motorcycle maker by sales Hero Honda Motors rose 2.12% to Rs 762.50. It reported a 9.54 % rise in its motorcycle sales in May 2008 at 3,12,317 units as compared with 2,85,109 units in May 2007.

State run oil marketing companies declined ahead of the impending decision on fuel prices. Indian Oil Corporation (down 0.51% to Rs 423.20), HPCL (down 0.84% to Rs 242.60) and BPCL (down 1.3% to Rs 353.05) edged lower.

Earlier during the weekened, state-run oil firms announced hike in jet fuel (aviation turbine fuel) prices by 18.5% to compensate with soaring international prices.

Sadbhav Engineering rose 1.35% to Rs 982 after company received claims of Rs 21.56 crore in respect of the arbitration proceeding initiated by the company against the Gujarat Industrial Power Company.

Ram Informatics rose 5.77% to Rs 16.50 after company received an order from commercial tax department, Government of Andhra Pradesh for support of portal services.

PSL rose 3.46% to Rs 386 after Florida Gas Transmission Company released an order on both PSL North America LLC (a subsidiary of the company) and PSL for 543 miles of pipes and associated coating, for value of $418 million.

Most of the Asian markets were trading higher today, 2 June 2008. Hong Kong's Hang Seng, Taiwan Weighted, Singapore's Straits Times and Japan's Nikkei, China's Shanghai Composite were up by between 0.39% to 1.27%.

However South Koreas Seoul Composite declined 0.22% at 1,847.99.

US markets closed mixed on Friday, 30 May 2008. Dell earnings were better than expectations and rebound in oil price led technology and energy shares higher. The Dow Jones industrial average fell 7.9 points to 12,638.32. However the technology-led Nasdaq Composite index gained 14.34 points to 2, 522.66.

Back home, the market posted decent gains on Friday, 30 May 2008, led by fall in global crude oil prices and strong Q4 GDP data. The 30-share BSE Sensex rose 99.31 points or 0.61% to 16,415.57 and the broader based S&P; CNX Nifty rose 34.8 points or 0.72% at 4870.10, on that day.

The BSE Sensex declined 234.07 points or 1.41% to 16,415.57 in the week ended Friday, 30 May 2008. S&P; CNX Nifty lost 76.45 points or 1.54% to 4,870.10 in the week.

As per provisional data, foreign funds purchased shares worth a net Rs 106.37 crore on Friday, 30 May 2008. Domestic funds bought shares worth a net Rs 729.93 crore on that day.

Foreign institutional investors (FIIs) were net buyers of Rs 333.22 crore in the futures & options segment on Friday, 30 May 2008. They were net buyers of index futures to the tune of Rs 31.71 crore and bought index options worth Rs 577.10 crore. They were net sellers of stock futures to the tune of Rs 364.21 crore and bought stock options worth Rs 88.62 crore.

U.S. light, sweet crude oil futures dipped 14 cents to $127.21 a barrel today, 2 June 2008 as traders took profits tracking the dollar for direction.

India's GDP grew a strong 8.8% in Q4 March 2008 from a year earlier, led by strong expansion in the services sector, data released by the government on Friday, 30 May 2008 showed. The Q4 annual GDP growth matched an upwardly revised 8.8% growth in Q3 December 2007. The GDP growth was 9% in FY 2008 (year ended March 2008). The government had earlier estimated annual growth of 8.7% in FY 2008.

India's inflation based on the wholesale price index rose 8.1% in 12 months to 17 May 2008, the highest reading in more than 3- years and above the previous week's annual rise of 7.82%, government data released on Friday, 30 May 2008, showed. Inflation for the week ended 22 March 2008 was revised upwards to 7.85% from 7%.

Liberalisation of imports, banning exports and a cut in excise and customs duties are some of the many steps initiated by the United Progressive Alliance (UPA) government to control inflation in the country, Finance Minister P Chidambaram said on 1 June 2008.

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