Maintaining its momentum for the fourth day, the Bombay Stock Exchange (BSE) benchmark Sensex on Thursday rose 228 points or 1.2% to end at six-week high of 19,407, as auto, metal, banking and power stocks saw good demand amid hopes of an interest rate cut by the Reserve Bank of India on May 3.
“Hopes of at least 0.25 % rate cut is helping markets rise. A (credit) rating upgrade cannot also be ruled out,” said Gautam Sinha Roy, vice-president, equities, Motilal Oswal Securities.
Similarly, the broader National Stock Exchange (NSE) Nifty also rose by 79 points or 1.4 % to finish at 5,916.30. In the last four sessions, the Sensex has gained over 675 points.
“I think there is a case for a (ragings) upgrade because we have taken the kind of decisions that most of countries in the world have not been able to take,” said Arvind Mayaram, secretary, economic affairs said after meeting a with representatives of rating agency S&P.
A similar meeting with Fitch took place on April 12. S&P currently rates India as 'BBB-', the lowest in the investment grade, with a negative outlook.