Sensex, Nifty up 2.0 pc on Moody’s positive credit outlook
Mumbai: The benchmark BSE Sensex and NSE Nifty rallied for the second week in a row by over 2.0 per cent buoyed by across-the-board buying, Moody’s raising country’s credit outlook and speculations that the US Fed may keep interest rates low after weak jobs data.
However, Reserve Bank of India, in its monetary policy on April 7, left the short-term lending rate or repo rate unchanged and also kept the cash reserve ratio and the statutory liquidity ratio static, which weighed on the markets as Sensex closed almost flat on Tuesday.
Later, it continued its upward trend on Moody’s report and hopes of delay in the US interest rate hike.
Showing confidence in the Indian economy, global ratings agency Moody’s raised country’s credit outlook to ‘positive’ from ‘stable’ and said an upgrade in its sovereign rating is also possible in the next 12-18 months, giving space for operators and investors to go long.
Another agency, Fitch, announced country’s sovereign credit rating at ‘BBB-‘ with a ‘stable’ outlook.
Market participants expected more capital inflows after weak US jobs data indicated that the Federal Reserve will not be in a hurry to raise interest rates.
All-round buying was seen, as all 12 sectoral indices closed strong with metal, realty, FMCG, consumer durables, Power, Oil&Gas, IT and Tech segments, leading the pack.
The BSE 30-share barometer resumed higher and moved in a positive for the major part of the week in a range of 28,907.81 and 28,221.59 before concluding at 28,879.39, a sharp gain of 619.24 points or 2.19 per cent.
In last two weeks, the gauge has surged by 1,420.74 points or 5.17 per cent.