Sensex gains 150 pts on rate-cut hopes, global cues aid

The BSE Sensex and NSE Nifty started off trade with 1% gain on Monday following strong Asian cues after favourable outcome from Greek election. RBI's mid-quarter policy review will also be closely watched by the market today.

The BSE benchmark was up 150.72 points at 17,100.55 and the NSE benchmark climbed 50 points to 5,189. The broader markets were up over 0.5%.

Among Asian markets, Hang Seng, Nikkei, Straits Times, Kospi and Taiwan Weighted rose 1-2% while Shanghai was up 0.75%. The Dow Jones futures climbed 67 points, pointing towards a positive open today.

Greek polls provided hopes that Greece will stay in eurozone after New Democracy emerged as the largest party with around 30% vote share followed by Syriza party with 27% vote share. Socialist PASOK won over around 13% in Greek election.

Back home, the Reserve Bank of India will announce its mid-quarter policy review today. Experts feel the RBI may cut repo rate by 25 basis points or cash reserve ratio by 25 bps.

Nandan Chakraborty of Enam expects the RBI to cut repo rate by 25 basis points as the slip in domestic growth deterioration warrants front-ended action.

IDFC, ICICI Bank, PNB, Axis Bank, Sesa Goa, Sterlite, Tata Steel, L&T, JP Associates, BHEL, Maruti and Hero Motocorp gained 1-2%.

ITC, HUL and BPCL were flat.

The CNX Midcap rose 65 points to 7,097. About four shares advanced for every share declining on the National Stock Exchange.

In the second line shares, GMR Infrastructure, Lanco Infratech and IVRCL were up 1.5-2.5%.

IDBI Bank, Yes Bank, DCB and UCO Bank moved up 1.5-2%.

Real estate stocks like Unitech, HDIL and Indiabulls Real Estate too gained 1.5-2%.

Aviation companies like Kingfisher Airlines, Jet Airways and SpiceJet rallied 1-2% after a 5% cut in aviation turbine fuel price in Delhi.

Pantaloon Retail surged 3%.

Tinplate shot up 16% to Rs 16.55 and Tata Sponge Iron surged 11.5% to Rs 340.55 after open offer made by Tata Steel. Open offer for Tata Sponge is for up to 17.34 lakh shares (11.26%) at Rs 375/share and open offer for Tinplate is for 1.46 crore shares (14%) at Rs 60/share.

However, SKS Microfinance fell over 1% after The Hindu Business Line reported that company has been barred from operating in Andhra Pradesh's Mahabubnagar district for not following rules.