Mumbai: Indian markets, rupee and 10-year bond prices surged on Friday after credit rating agency Moody’s Investors Services upgraded nation’s sovereign ratings to Baa2 from its lowest investment grade and changed the outlook on the rating to stable from positive.
“Moody’s upgrade comes as a welcome move in the wake of slew of structural reforms in the economy which are expected to enhance the potential growth in the medium term. In the near term, however, given that debt limits are nearly utilised there remains minimal room for a rally in government securities. Further, inflows in equity markets (which will be positive for rupee) will also increase domestic liquidity and hence increase quantum of OMO sales, which will further weigh on bonds. Notably, higher crude oil prices and risk of fiscal slippage is already weighing on bonds,” said Upasna Bhardwaj, senior economist at Kotak Mahindra Bank.
Here are the latest updates from the markets:
■ 11.57am: BSE Sensex traded higher by 332.85 points, or 1.01%, to 33,439.67, while the Nifty 50 gained 99.10 points, or 97%, to 10,313.85.
■ 11.55am: ICICI Bank, Cipla, HDFC and Tata Steel were top gainers today in the Sensex basket with gains to the tune of 3.70%, 2.91%, 2.65% and 2.29%, respectively. All the sectoral indices, except IT and Teck, were trading in the positive territory with realty, metal, finance and banking gaining up to 2%.
■ 11.50am: HDFC Standard Life shares surged 27.24% to Rs369 on the first day of the company’s stock market debut. Shares of HDFC Standard Life Insurance Co. Ltd debuted 7.24% higher on the bourses on Tuesday, after the insurer’s Rs8,695 crore initial public offer (IPO) was subscribed nearly five times earlier this month.
■ 11.04am: Cipla Ltd shares rose 3.20% to Rs611.95 after the company said it has received final approval for its abbreviated new drug application for Budesonide inhalation suspension from the US FDA to market a generic version of Astrazeneca’s Pulmicort Respules.
■ 10.54am: BSE Sensex surged 391.91 points, or 1.18%, to 33,498.73, while the Nifty 50 gained 115.40 points, or 1.13%, to 10,330.15.
■ 10.50am: Realty stocks rose after the union cabinet on Thursday increased the carpet area of houses under the government’s affordable housing scheme. Godrej Properties up 3.76%, Indiabulls Real Estate 3.93%, Brigade Enterprises 4.04%, Prestige Estates Projects 4.49%.
■ 10.03am: HDFC Standard Life Insurance Co. Ltd made a strong debut on stock markets. The stock opened at Rs311 on the BSE, up 7.24% against the issue price of Rs290. On the NSE, the stock was listed at Rs310, up 6.89% from the issue price.
■ IT stocks fall as rupee strengthened today. The BSE IT index fell 0.69%. Infosys was down 1.38%. TCS 0.58%, HCL Technologies fell 0.40%, LT Technology Services fell 0.73%.
■ 9.28am: BSE Sensex surged 363.01 points, or 1.10%, to 33,469.83, while the Nifty 50 gained 110.05 points, or 1.08%, to 10,324.80.
■ 9.25am: The Nifty Bank jumped 1.7% to 25,875.70 points. Banking stocks were major gainers in the rally. ICICI Bank Ltd gained 3%, State Bank of India 2.7%, HDFC Bank was up 1.4%, Punjab National Bank 4%, Bank of India 3.3%.
■ 9.18am: The rupee opened at 64.75 and touched a high of 64.63 or strengthened as much as 1.08%, its biggest gain since 14 March. At 9.17am, the rupee was trading at 64.70 a dollar, up 1% from its previous close of 65.32.
■ 9.15am: The 10-year bond yield slid 13 basis points, its steepest fall since 16 May, and was trading at 6.935% compared to its previous close of 7.062%. Bond yields and prices move in opposite directions.