NEW DELHI: Investors on Dalal Street overlooked the rating downgrade by Moody’s and opened in the green on Tuesday, focussing on the prospects of economic recovery as India exits one of the world’s toughest lockdowns. However, the gains were capped by the concerns raised in the ratings agency’s report and US-China tensions.

Downgrading India’s rating by a notch to ‘Baa3’ from ‘Baa2’ assigned in November 2018, Moody’s estimated India GDP shrinking by 4 per cent — first full fiscal contraction in more than four decades, as the country faces a prolonged period of slower growth.

At 9.20 am, BSE flagship Sensex was up 324 points or 0.97 per cent at 33,628, led by gains in Kotak Bank, RIL and HDFC. NSE benchmark Nifty advanced 92 points or 0.97 per cent to 9,918.

“The markets have resumed their uptrend trajectory for the day. We need to keep above the levels of 9,900 for the markets to remain positive and climb to higher levels. The support for the day is at 9,750. We can enter this trend on every dip for a target of 10,050,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

In the 30-share pack Sensex, Kotak Mahindra Bank leaped over 4 per cent to Rs 1,304 after reports said Uday Kotak was planning to offload nearly $1 billion worth of shares. M&M, Hero Moto, Tata Steel, Sun Pharma and Bajaj Finance were among other top gainers, adding 1-4 per cent.


How Sensex stocks were faring in opening trade (Source:

L&T was the biggest loser in the pack, down 1.13 per cent followed by ICICI Bank, ITC, Bajaj Auto and NTPC that dropped in the range of 0-1 per cent.

All sectoral indices on NSE were trading with gains. Nifty Auto was the biggest gainer, notwithstanding dismal sales by the companies in May, up 1.74 per cent followed by Nifty Pharma and Nifty Realty that added over 1.5 per cent each.

Broader market indices were faring better than their headline peers as Nifty Smallcap added 0.82 per cent while Nifty Midcap gained 0.51 per cent. Broadest index on NSE, Nifty 500 was up 0.23 per cent.

Globally, Asian stocks eked out gains as investors’ focus on the prospects of a global coronavirus recovery won out over familiar worries about Sino-US relations and the depth of economic damage.

Hampering broader global risk appetite, however, was US President Donald Trump’s vow to use force to end violent protests in American cities, which kept Wall Street stock futures negative in Asia.

MSCI’s broadest index of Asia-Pacific shares outside Japan , which had its best day in two months on Monday, extended its rally without panache – rising 0.3 per cent. The dollar nursed heavy losses, but steadied, and bonds firmed.

Japan’s Nikkei rose 1 per cent to its highest since late February and markets in Seoul, Taipei and Hong Kong also gained. US stock futures were off 0.5 per cent in Asian trade.

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