MARKETS LIVE: Sensex, Nifty trade 1% higher on Moody’s rating upgrade

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Benchmark indices were trading higher after global rating company, Moody’s Investors Service upgraded India’s sovereign rating to Baa2 from Baa3 and changed the outlook to stable from positive

This development that will give big boost to Modi government, reduce the cost overseas borrowing and improve investments in India. Rating company, while justifying the upgrade said that the reforms undertaken by the government will “improve the business climate, enhancing productivity, stimulating foreign and domestic investment, and ultimately fostering strong and sustainable growth.”

This year it expects real GDP growth to moderate to 6.7% in the fiscal year ending in March 2018.

Globally, Asian shares also rose on Friday as strong US earnings and a step forward in the US Congress on tax reform brightened the mood, even though investors noted that many more hurdles must be passed to reach a final deal on tax cuts.