Fourth, inflation has so far been within tolerance thresholds at the wholesale level. Fifth, prudential and profitability indicators suggest that banks'' balance sheets have become stronger and sounder than before.

Sixth, domestic financial markets have been orderly and insulated so far from the turmoil in global markets on account of the subprime crisis though there has been unusual volatility in equity markets that is to some extent influenced by global developments. Seventh, in the external sector, the current account deficit remains well within sustainable limits, with net invisible surpluses offsetting the merchandise trade deficit to a considerable degree.”

Gainers and Losers in the Market

Of the BSE share, ICICI Bank lost 3.9% to 1,224 rupees and led the declines in the Sensex index. Hindustan Unilever surged 4.3% to 207.95 rupees and led the advancers in the Sensex index.

State Bank of India fell 3.5% to 2,226 rupees.

DLF slid 0.8% to 885.8 rupees. Larsen & Toubro shed 2% to 3,769.45.

Reliance Industries rose 0.1% to 2,565.8 rupees.

Earnings

Maruti Suzuki India 0.2% lost at 860.8 rupees. The company today posted 24.1% rise in net profit to 467.04 crore rupees on 27.2% rise in total income rose 27.2% to 4,844.8 crore rupees in third quarter of December 2007 over the third quarter of December 2006.

Software Services Stocks

Infosys Technologies gained 3.34% to 1,495 rupees, Wipro rose 1.6% to 412.5 rupees, TCS surged 0.8% to 861 rupees.

India''s revenue from back-office outsourcing is expected to increase nearly five-fold to $50 billion by 2012 despite a potential economy recession in the United States market, an industry report released said yesterday.

The report however noted that skill shortages, creaky infrastructure in smaller towns and cities and rapidly rising wages are major challenges.

According to a study conducted by IT industry group Nasscom and consulting firm Everest, the sector has increased at 35% annual growth over the last five years to hit annual revenue of about $11 billion.

The study said while the United States would continue to be the largest BPO opportunity for India up to 2012, there were significant untapped opportunities in Britain, Europe and Asia Pacific.

Boeing Joint Venture

Boeing Co has entered into an agreement with the Indian Institute of Science and software firms Wipro Technologies and HCL Technologies to develop wireless technologies and other network technologies.

The venture, Aerospace Network Research Consortium, is for a period of four years and can be extended based on ""mutual interests"", according to a joint statement released by the firms on Tuesday.

Boeing last year signed a 10-year manufacturing deal with India''s state-run Hindustan Aeronautics Ltd worth more than $1 billion. Boeing has said it sees business worth $80 billion in India''s commercial sector and $15 billion in the defense segment in the next 10 to 15 years.

7:00AM New York, 7:00PM Hong Kong – Hong stocks edged higher on the expectations of a rate cut in the U.S. China Oilfield and China Life earnings surge in 2007.