Sensex up 167 pts after Moody's upgrades India's rating outlook to positive

Mumbai - The benchmark BSE Sensex rose over 167 points in early trade today after rating agency Moody’s raised India’s rating outlook from stable to positive. A firming trend in other Asian markets also buoyed the sentiment here. The 30-share index, which had gained 750.26 points in past four sessions, rose further by 167.33 points, or 0.58 percent, at 28,875.08 with all sectoral indices, led by metals and IT, rising up to 0.92 percent. On similar lines, the National Stock Exchange index Nifty moved up by 42.80 points, or 0.49 per cent, at 8,757.20. Brokers said sentiments were bolstered after rating agency Moody’s upgraded India’s credit rating outlook from stable to positive, accelerating buying activity. [caption id=“attachment_2130383” align=“alignleft” width=“380”] Reuters[/caption]“There is an increasing probability that actions by policy makers will enhance the country’s economic strength and, in turn, the sovereign’s financial strength over coming years. India has grown faster than similarly rated peers over the last decade due to favorable demographics, economic diversity, as well as high savings and investment rates,” Moody’s has been quoted as saying in a Bloomberg report. The comment is seen as a major boost to the efforts undertaken by prime minister Narendra Modi and RBI governor Raghuram Rajan. “This is a validation of the broad direction and stance of government policy over the last many months including the Budget and so on,” chief economic advisor Arvind Subramanian told CNBC-TV18 in an interview soon after the outlook upgrade. Among other Asian markets, Kong’s Hang Seng index zoomed 5.43 percent to a new 7-year high while Japan’s Nikkei gained 0.65 percent in early trade. The US Dow Jones Industrial Average ended 0.15 per cent higher in yesterday’s trade. With inputs from PTI