Mumbai, Nov 17 (IANS) A sovereign ratings upgrade of the Indian government’s bonds and of some domestic industry majors from US credit rating agency Moody’s on Friday lifted the key Indian equity indices to their new intra-day record highs.
The two indices — S&P BSE Sensex and NSE Nifty50 — gained over 300 points each after the ratings upgrade.
Even during the late-afternoon trade session, both the indices maintained their upward trajectory, supported by broadly positive Asian markets and healthy uptake in bank, metal and consumer durable’s counters.
Stocks of firms like HPCL, IOC, ONGC, GAIL and NTPC rallied as these firms were amongst those which got an issuers and ratings upgrade.
However, profit booking slowed the exponential rise which was witnessed during the morning and noon sessions.
The 30-scrip Sensitive Index (Sensex) traded 329.40 points or 0.99 per cent higher during the mid-afternoon session.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) gained 79.75 points or 0.78 per cent at 10,294.50 points. The Nifty 50 touched a new intra-day high of 10,343.60 points.
The BSE Sensex, which opened at 33,388.47 points, traded at 33,391.25Apoints (at 2.45 p.m.) higher 284.43 points or 0.86 per cent from the previous day’s close at 33,106.82 points.
The Sensex touched a high of 33,520.82 points — its new intra-day high — and a low of 33,380.39 points in the trade so far.
“Markets rose to touch their record intraday-day highs as Moody’s upgrade buoyed investors sentiments,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“However, the post afternoon trade saw profits being booked as steep selling took place… markets it seems is taking a breather post the upgrade.”
The upswing in the key indices came after the US credit rating agency Moody’s upgraded India’s sovereign rating to Baa2 from its lowest investment grade of Baa, while changing the outlook for the country’s rating to stable from positive, and said its was based on the Indian government’s “wide-ranging programme of economic and institutional reforms”.
The rating agency simultaneously upgraded India’s local and foreign currency issuer rating to Baa2 from Baa3.
“The decision to upgrade the ratings is underpinned by Moody’s expectation that continued progress on economic and institutional reforms will, over time, enhance India’s high growth potential and its large and stable financing base for government debt, and will likely contribute to a gradual decline in the general government debt burden over the medium term,” a Moody’s Investor Service release said.
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