Soon after India’s sovereign credit rating jumped, did a world of good to investors’ confidence as both
Indian markets on Friday lauded Moody’s upgradation of India’s sovereign credit rating. Sensex jumped 236 points to end the day at 33,342.80. Nifty too cheered the move by rising 68.85 points to finally close at 10,283.60.
The Moody’s on Friday upgraded India’s sovereign credit rating by a notch to ‘Baa2′ with a stable outlook citing improved growth prospects driven by economic and institutional reforms. The thumbs up by the rating agency gave a big boost to the markets.
The momentum failed to carry on as investors rushed in to shave profit. Both indices shed points during the day after they had opened much higher. Sensex had skyrocketed 414 points to touch 33,521 and the NSE Nifty had raced past 10,300 early on Friday.
Banking stocks led from the front. ICICI Bank, HDFC Bank and SBI climbed by up to 1.86 per cent. Barring IT and technology, which lost over 1 per cent, all other sectoral indices witnessed gains. Realty jumped by the biggest margin.
Cipla gained 2.64 per cent after the company said it has received final approval from the US health regulator for its suspension product. HDFC Ltd gained 2.23 per cent. Maruti Suzuki gained 2.15 per cent after Japanese auto majors Toyota Motor Corporation and Suzuki Motor Corporation said they will co-operate on introducing electric vehicles (EVs) in India by 2020.
IT stocks like Infosys, TCS and Wipro, however, struggled. They fell up to 1.79 per cent as the stronger rupee means lesser revenues from the US and Europe.
In sync with equities, the rupee too strengthened considerably.
There was support from Asian markets, which took leads from Wall Street after the US House’s passage of the Republican tax cut plan. European shares too ruled high.
Domestic institutional investors (DIIs) pocketed shares worth a net Rs 847.45 crore while foreign portfolio investors (FPIs) sold equities worth a net Rs 447.42 crore, as per provisional data.
Broader markets played along, with mid-cap and small cap indices adding up to 1.03 per cent.
(With inputs from PTI)