Indian shares soar

Indian shares shrugged off lower-than-expected economic growth in the March quarter and rose 1.5 percent on Tuesday, joining a global rally after a new aid package for Greece eased concerns over the eurozone debt crisis. Financials led the gains, with State Bank of India, HDFC Bank and ICICI Bank rising between 0.8 and 4 percent.
"Global markets are really doing well. Markets are cheering positive news from Germany," Neeraj Dewan, director at Quantum Securities, said. The main 30-share BSE index closed up 1.49 percent, or 271.22 points, at 18,503.28. All but one of its components advanced.
However, the benchmark fell 3.3 percent in May on large foreign fund outflows. It was the second consecutive month of decline and the index is down nearly 10 percent year-to-date. Foreign funds bought shares worth $270 million last Thursday, latest data from the market regulator showed, but are net sellers of $1.5 billion in May.
The European Union raced to draft a fresh bailout package for indebted Greece to release vital loans next month and avert the risk of the eurozone country defaulting. Germany, which along with some other countries had resisted extra funding, is considering concessions in efforts to support the country by dropping its push for an early rescheduling of Greek bonds, the Wall Street Journal reported on Tuesday.
The economy expanded at its slowest pace in five quarters in the three months to March as rising interest rates crimped consumption and investment. Gross domestic product grew an annual 7.8 percent in the March quarter, lower than the 8.3 percent expansion in the previous quarter and below the median forecast for growth of 8.2 percent in a Reuters poll.
Reliance Communications closed up 2.2 percent at 89.50 rupees, after falling as much as 2.2 percent during trade following its seventh straight decline in quarterly profit. The No 2 Indian mobile carrier by users said it had received several offers for its 95-percent stake in its tower arm, a move seen as aimed at soothing investors a day after it reported a plunge in profit. Analysts also said a correction in commodity prices could ease worries over inflation, with Brent set to fall more than 8 percent in May, the first monthly decline since August and the biggest in a year.