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The boards of Mindtree Ltd. and Larsen & Toubro Infotech Ltd., two software units controlled by the Mumbai-based engineering firm, could consider share swap ratios for the merger as early as next week, one of the people said, asking not to be identified as the information is not public.

The division bench of Justice Gautam Patel and Justice MJ Jamdar, however, clarified that any public issue that LIC proceeds with will be subject to the court’s final ruling. The court will hear the matter further on June 21.

Tuesday may see the market trying to find some base for itself. The levels of 17,330 and 17,400 will act as probable resistance points. Supports come in at 17,150 and 17,000 levels.

"Death Cross signals a bearish trend ahead. But the Nifty50 also made an indecisive Doji as there was no follow up selling after the opening gap down. While the trend stays negative, a bounce cannot be ruled out."

The RBI, which earlier this month, held the benchmark policy repo rate steady at its current record low of 4 per cent, has acknowledged significant upside risks to inflation by sharply increasing its forecast for consumer prices going ahead.

Due to this unexpected gap down, the Nifty is back to the crucial support zone of ‘200-day SMA’ placed around 17,100.

The weighted average lending rates (WALRs) on fresh as well as outstanding rupee loans have declined across sectors. Banks have extended the benefits to existing borrowers by reducing the WALR more than the repo rate cuts during the EBLR period according to a study titled " Monetary Transmission to Banks’ Interest Rates: Implications of External Benchmark Regime" published in the latest monthly bulletin.

The Dow Jones Industrial Average fell 39.74 points, or 0.12%, at the open to 34,411.49.

News reports on Monday said Larsen & Toubro, which owns 61 per cent in Mindtree, is weighing its merger with Larsen & Toubro Infotech, which is another tech services subsidiary. Apparently, the Indian conglomerate seeks scale to compete with global digital giants.

“We would like to state that there is no information available with the company as of today, which is required to be reported under extant SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and which may have a bearing on the stock price of the company,” it said in a regulatory filing.