Indian shares are poised to open sharply higher on Monday, mirroring firm Asian cues, higher commodity prices and the strengthening euro as the Greek election results eased fears of an imminent Greek exit from the currency bloc. The pro-bailout parties have won Sunday's Greek election, with the New Democracy and Pasok parties taking 162 seats in the 300-member parliament, according to the official projection by the Interior Ministry in Athens.
Having said that, investors will take cues from RBI's monetary policy meeting today, with many analysts expecting a 25 basis point cut in the repo rate. However, there is a difference of opinion on whether there will be a CRR cut.
While the UPA named finance minister as its Presidential nominee, the NDA remains divided over its choice. With regard to appointment of a new finance minister, the prime minister has every right to appoint anyone and that could be someone from outside the political domain, Congress General Secretary Congress General Secretary Digvijay Singh indicated in a reply to a question on CNN-IBN's Devil's Advocate program.
In corporate news, State-run lender SBI has cut lending rates on term loans, agriculture loans and loans to small and medium enterprises by 50 to 350 basis points across categories, effective from June 1. The lender also unveiled plans to raise up to $2 billion from the overseas market in the next three months.
Tata Steel has announced an voluntary open offer to increase its stake in its subsidiary, Tinplate Company of India to 14 percent. The company also announced open offer to the shareholders of Tata Sponge Iron to buy 11.26 percent stake at Rs 375 per share.
Deccan Chronicle Holdings said in a statement to the BSE that it has been approached by multiple parties evincing interest in acquiring stake in the IPL Team and the company has appointed Religare Capital Markets to run a process and advise on the suitability of the offers.
Allcargo Logistics said it would consider and approve a proposal for buy back of its equity shares at a board meeting on June 20.
Jindal Power plans to spend $7.7 billion on hydroelectric projects over the next decade as coal shortage forces utilities to cut dependence on fossil fuels, the Bloomberg reported, citing an interview of Jayant Shrinivas Kawale, managing director for hydro and renewables.
Elsewhere, U.S. stocks posted strong gains on Friday as separate reports showing an unexpected drop in industrial production in May and a substantial deterioration in consumer sentiment increased the likelihood of further monetary stimulus coming out the Federal Reserve. The Dow rose 0.9 percent, the tech-heavy Nasdaq climbed 1.3 percent an the S&P 500 added a percent.
by RTT Staff Writer
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