Sensex zooms 414 points after Moody's ups India rating

Yolanda Curtis
November 17, 2017

The rating action by Moody's became apparent right in the opening session that saw the BSE index shoot up 414 points at one point.

Stocks have made little headway this month as scant progress on US tax reform and record high levels for many markets restrict appetite for risk-taking investments.

However, profit booking brought down the exponential rise which was witnessed during the morning and noon sessions.

The BSE Consumer Durables index was trading 2.17 per cent up at 20,478, while the benchmark Sensex was 1 per cent up at 33,442 around 2.10 pm (IST).

The broader Nifty index closed higher by 68.85 points or 0.67 percent at 10,283.60, with HDFC, Cipla, Maruti Suzuki, Tata Motors and ICICI Bank pacing the gainers.

The Sensex registered the day's high and low at 33,520.82 and 32,278.91 points, respectively. The benchmark 10-year bond yield dropped as much as 12 basis points, while the rupee rose to as high as 64.60 against the dollar from its close of 65.3250 on Thursday.

The upswing in the key indices came after the USA 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".

Moody's also changed the rating outlook to "stable" from "positive" saying the economic and institutional reforms pushed through by the government will help stabilize debt.

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