Indian shares jump 1%; Infosys, Reliance Industries rally

Indian shares jump 1%; Infosys, Reliance Industries rally

The benchmark Sensex opened in the green by rising 164 points today, buoyed by value-buying in select blue-chips at a time of firm Asian cues.

The Sensex had lost 554.12 points in the previous three sessions on subdued exports, higher inflation and muted second quarter earnings of some companies.

The broader NSE Nifty closed 0.67 per cent higher at 10,283.60, while the benchmark BSE Sensex finished 0.71 per cent up at 33,342.80.

"Moody's India ratings upgrade is an acknowledgement of the economic and structural reforms undertaken over past few of years". Private Banks like ICICI Bank, Yes Bank, and Axis Bank gained more than 2% accelerating Nifty Bank to new 52 week high. Financials accounted for more than half the gains on the NSE index, with the Nifty finance index climbing 2 percent and the Nifty PSU Bank index up 2.4 percent.

The 50-share Nifty leaped 124.40 points, or 1.21 per cent, to 10,339.15.

The upswing in the key indices came after the USA credit rating agency Moody's upgraded India's sovereign rating to Baa2, while changing the outlook for the country's rating to stable from positive, and said it was based on the Indian government's "wide-ranging programme of economic and institutional reforms".

Moody's also changed the rating outlook to "stable" from "positive" saying the economic and institutional reforms pushed through by the government will help stabilize debt.

Other banking stocks that scored gains were Punjab National Bank, Bank of Baroda, Federal Bank, HDFC Bank and Kotak Bank.

At 10.59 am, SBI shares were trading at Rs 341.65, up 2.50 per cent after touching the day's high of Rs 346.70 apiece.

China's Shanghai Composite shed 0.10 per cent in their early deals.