BSE Sensex climbs 177 points as Moody’s upgrade lifts bank stocks

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Mumbai | Updated: April 9, 2015 5:08:02 PM

The benchmark BSE Sensex extended its winning run to the fifth session today, rising over 177 points to end at nearly four-week high of 28,885.21

BSE Sensex, Moody's rating, India's rating outlook,economy, business and finance, market and exchange, BSE Sensex opening, NSE Nifty, inflation data, bse sensex inflation data, NSE Nifty opening, stock market, stock market news, stock market India, Market today, Moodys, Moody's upgrades India's rating, economy, sovereign rating, liquidity, indias outlookSensex jumps 177.46 pts to end at 28,885.21; Nifty gains 63.90 pts to close at 8,778.30. (Reuters)

The benchmark BSE Sensex extended its winning run to the fifth session today, rising over 177 points to end at nearly four-week high of 28,885.21, after Moody’s upgraded India’s sovereign ratings outlook to ‘positive’ from ‘stable’.

Lenders led the rise with Axis Bank, SBI, HDFC Bank, ICICI Bank rallying in the range of 1.65 per cent to 2.88 per cent.

In volatile movements, the 30-share gauge opened on a strong footing but succumbed to profit-booking and slipped into the negative zone to touch a low of 28,622.44.

Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Fair global market, good minutes from FoMC and upgrading by Moody helped to maintain the positive trajectory of the market. Led by global market, commodities stocks were up. In the same time interest sensitive stocks especially banks were up expecting cut in lending rate as a precursor said by RBI. Post which credit growth is likely to improve along with expectation for further cut by June’15. As known Q4 results for the banks are likely to be low with higher NPA provisions.

However, it staged a strong comeback following a flurry of buying in the later part of the session to close higher by 177.46 points or 0.62 per cent higher at 28,885.21.

The Sensex has now garnered over 927.72 points in five sessions and is at nearly four-week highs. The previous high was on March 12 when it ended at 28,930.41.

The wide-based NSE Nifty index spurted by 63.90 points, or 0.73 per cent, to close at 8,778.30. During the session, it shuttled between 8,785.50 and 8,682.45.

Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Today after opening with a positive note markets remained choppy, but later in the day investors were taken fresh long positions in the banking and IT sectors ahead of the results season. Moody’s upgrade of the India’s sovereign rating outlook to positive also helped the markets. The global rating agency has maintained its rating on India at Baa3.
Nifty closed with at 8778 up around 63 points.  The market breadth stood positive as there were seen 1583 stocks advancing against 1256 stocks declining. The Nifty volatility index, India VIX stood at 14.4175 up around 0.48%.
The mid-cap and small-cap sector were also in green, ended up around 0.23% and 0.73% respectively.
Banking and Metal sectors were the gainers in the sectoral front for day which ended up around 2.54% and 1.31% respectively. The losers on the other end were Healthcare and Realty which ended down around 2.23% and 1.07% respectively.
In the stocks’ front, the major gainers were PNB and IndusInd bank which closed up around 6.68% and 4.88% respectively whereas the losers were Sun pharma and Lupin which closed down around 3.50% and 3.27% respectively.
The FIIs were sellers in the cash markets segment, sold shares worth Rs 479.18 crore on Wednesday, 08 April 2015. On the other hand the DIIs were net buyers on 08 April 2014, bought shares worth Rs 382.54 crore as per the provisional data from the stock exchanges.
The European markets were trading higher based on the strong German Industrial production data. But the US index futures were trading lower.

Brokers said sentiments bolstered with banking stocks witnessing buying interest after Moody’s raised India’s credit rating outlook to ‘positive’ and said an upgrade in its sovereign rating is also possible in the next 12-18 months.

The BSE banking index gained the most by rising 2.58 per cent.

In the banking space, prominent gainers were PNB at 6.03 per cent, IndusInd Bank 4.63 per cent, Kotak Bank (4.16 pc), Bank of India (3.15 pc), Axis Bank (2.88 pc), Yes Bank (2.67 pc), SBI (2.50 pc), Canara Bank (2.48 pc), Bank of Baroda (2.40 pc), HDFC Bank (1.68 pc) and ICICI Bank (1.65 pc).

Out of 30-Sensex stocks, 18 ended with gains, while 12 others finished in the negative zone.

Among other sectoral indices, metal rose by 1.43 per cent, PSU index 0.89 per cent, IT index (0.50 per cent) and Power index (0.37 per cent), among others.

In tandem with overall trends, smallcap index rose 0.71 per cent while BSE midcap index edged up by 0.25 per cent.

Furthermore, a firm trend among other Asian markets and higher opening across European markets also buoyed sentiments.

Foreigners sold shares worth Rs 479.18 crore, while Domestic Institutional Investors bought shares worth Rs 382.54 crore yesterday, as per provisional data.

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