On Friday, global rating agency Standard & Poor's stuck with its "BBB-minus" sovereign rating and "stable" outlook for India. That came a week after another global agency Moody's decided to upgrade its rating on India to "Baa2" from "Baa3", citing low income levels, high debt and weaker government finances. S&P said it was comfortable with its current rating, which leaves India at its lowest investment-grade standing, despite welcoming recent actions such as the unveiling of GST (Goods and Services Tax).
Last week, the market witnessed largely positive momentum with quiet volumes sessions as bulls remained upper-hand. The liquidity driven gains were supported by positivity in global peers, some domestic triggers along with buying in fundamentally strong stocks lifted the indices. The market sensed buoyancy with Government promulgating ordinance to amend the insolvency and Bankruptcy code (IBC), This Ordinance will prevent defaulters from bidding for their assets in resolution proceedings and take control.
Intermittent buying was witnessed in most of the sectors with healthcare, energy and IT stocks, while banking shares witnessed profit-booking.
Minutes of Federal Reserve - the US central bank - showing slower than expected rate hikes, and a surge in IT stocks on speculation over sovereign rating upgrade also lifted the Nifty and Sensex indices.
(With agency inputs)