Indian markets poised for rally after Moody’s upgrade

MUMBAI (Reuters) – Indian markets were poised for a big rally on Friday following an unexpected rating upgrade by Moody’s Investors Service, traders said.

Moody’s upgraded India’s local and foreign currency debt rating to Baa2 from Baa3 on the back of continued economic and institutional reforms including the recent goods and services tax, it said in a release.

The 10-year benchmark bond yield is expected to fall 7-10 basis points in early trade from its previous close of 7.06 percent and move in a 6.95 percent to 7.00 percent band during the day.

The rupee will strengthen and likely trade in 64.50 to 64.75 to the dollar from its Thursday close of 65.32/33.

Stocks are also likely to rise on the back of this positive sentiment tracking Nifty futures.