0256 GMT [Dow Jones] India government bonds may open a tad lower as a
favorable outcome in the Greek polls is likely to lead investors out
of safe-haven assets and into riskier stocks and currencies, says a
trader with a primary dealership. Investors across the region cheered
the victory of the pro-bailout New Democracy party, which eased
concerns over an imminent Greek exit from the eurozone. The 8.79% 2021
note is likely to open around INR102.70 from INR102.90 on Friday.
Still, the highlight of the day will be the RBI's rate-setting
meeting, where it is likely to trim it key lending rate by 25 bps, a
Dow Jones poll shows. The trader says the RBI may not only cut the
main policy rate, but also slash banks' mandatory cash holding
requirement by 25 bps. "If RBI wants banks' to cut lending rates,
lowering the cash reserve ratio is important, thereby making liquidity
among banks easier," the trader adds. (khushita.vasant@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
June 17, 2012 22:56 ET (02:56 GMT)
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