Moody`s India upgrade: Investor wealth surges by Rs 1.71 lakh cr as stocks zoom

New Delhi: Investor wealth on Friday rose by Rs 1.71 lakh crore as India's sovereign credit rating upgrade gave investors a big reason to cheer.

Both Sensex and Nifty today ended with more than 0.5 percent gains, powered by financial and metal stocks.

The rating action by Moody's became apparent right in the opening session that saw the BSE index shoot up 414 points at one point. But the momentum failed to carry on as investors rushed in to shave profit as the index closed the day at 33,342.80, up 235.98 points -- or 0.71 percent. The gauge had rallied 346 points in the previous session.

Led by the gain in the stock market, the total market capitalisation of BSE-listed companies surged by Rs 1,71,489.22 crore to Rs 1,44,90,494 crore.

Moody's Investors Service today raised India's sovereign rating for the first time in 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms.

The US-based agency upped India's rating to Baa2 from Baa3 and changed its rating outlook to 'stable' from 'positive', saying the reforms will help stabilise rising levels of debt.

Meanwhile, Cipla was the leader of the Sensex chart, gaining 2.64 percent, while HDFC Ltd came in next, up 2.23 percent.

Broader markets played along, with mid-cap and small cap indices adding up to 1.03 percent.

On BSE, 1,615 stocks advanced, while 1,135 declined and 174 remained unchanged.

With PTI Inputs