Moneycontrol
Nov 17, 2017 05:52 PM IST | Source: CNBC-TV18

Moody's upgrade positive for flows into Indian equity & debt market: Kotak Mah AMC

The rating which has come after a gap of almost 13-years is a sentiment booster and positive for flows into equities and debt market

CNBC TV18 @moneycontrolcom

The Nifty started the week on a soft not on back of higher oil prices but ended the week on a bullish note. Moody’s India upgrade lifted the market sentiment although oil prices and bond yields remains a worry.

The 30-share BSE Sensex gained 235.98 points or 0.71 percent at 33,342.80 and the 50-share NSE Nifty rose 68.80 points or 0.67 percent to 10,283.60.

Moody's Investors Service ("Moody's") has today upgraded the Government of India's local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive.

To discuss what all this means for market going forward CNBC-TV18 spoke to Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company and Ashwani Gujral of ashwanigujral.com.

Shah says from a flow point of you Moody's upgrades provides a a great opportunity for India because there are many pensions funds that don’t invest in India because of lower rating. However, now they may consider investing in India and may see increased participation from them going forward.

One could also see increased allocation to Indian debt offshore as well as local market.

The rating which has come after a gap of almost 13-years is a sentiment booster and positive for flows into equities and debt market.

For the entire discussion, watch video
Sections
Follow us on
Available On