Indian shares edged higher on Monday, in tandem with sharp gains across Asia after Greek pro-bailout parties secured ruling majority in knife-edge elections on Sunday, easing concerns over a potential Greek exit from the currency bloc. The rupee opened higher against the dollar, thanks to improved risk sentiment across the region amid Greek election results.
Moving fairly in a narrow trading range, the benchmark 30-share Sensex is currently up 128 points or 0.75 percent at 17,078, while the broader Nifty index is up 41 points or 0.79 percent at 5,180.
SBI is up nearly two percent after the state-run lender cut lending rates and unveiled plans to raise up to $2 billion via an overseas bond issue in the next three months.
Private sector rival ICICI Bank is gaining 1.5 percent and HDFC Bank is up a modest 0.3 percent on renewed hopes that the RBI will cut key policy rates even as inflation remains uncomfortably high.
The central bank is likely to unveil a softer interest rate regime in its mid-quarter review due around noon, as dark clouds continue to gather over the economy against the background of slowing growth amid rising input costs and high interest rates.
Aviation stocks are gaining ground after state-run oil retailers cut jet fuel prices by a steep five percent. Kingfisher is up 2.3 percent, Jet Airways is rallying 3.2 percent and SpiceJet is up 2.9 percent.
Tata Steel is adding 2.5 percent as it proposed to hike its stake in group firms Tinplate Company and Tata Sponge Iron. Deccan Chronicle Holdings is moving up 1.5 percent after a clarification on reports concerning stake sale in its IPL team Deccan Chargers.
Telecom stocks are rising ahead of an empowered group of ministerial meeting on 20th to decide on spectrum auction-related issues. Bharti Airtel and Idea Cellular are up about half a percent each, while Reliance Communication is adding a percent.
NALCO is climbing 5.2 percent on divestment reports. Allcargo Logistics is up nearly 6 percent ahead of a board meet on June 20 to consider a share buy back.
Piramal Healthcare is up 0.9 percent on the buzz that it may buy U.S.-based healthcare company Cambridge Major Labs for $200 million. Lanco Infratech is climbing 3.3 percent on reports it is selling stake in hydropower business.
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