Opening bell: Nifty likely to rally on outlook upgrade

The Indian market is expected to continue the positive momentum with the SGX Nifty, an indicator of pre-market opening, trading up 31 points to 8797.50 at 7:50 hrs.

Moody's upgrades India's outlook to positive versus stable. Rating remains unchanged at Baa3. Moody’s believe that there is an increasing probability that actions by policy makers will enhance the country's economic strength. 

The market maintained its northward journey for the fourth consecutive session on Wednesday with the Nifty conquering 8700 level. The broader markets also moved in tandem with benchmarks. Positive global cues and banks passing on rate cuts to system boosted sentiment today.

The 30-share BSE Sensex jumped 191.16 points to 28707.75 and the 50-share NSE Nifty rallied 54.10 points to 8714.40 supported by technology, FMCG, Coal India and Reliance Industries.

Among global markets, in the US, stocks closed higher as investors shook off a plunge in oil prices and digested the Federal Reserve's meeting minutes as mostly dovish. The Federal Reserve Open Market Committee (FOMC) released the minutes of its March meeting, revealing that central bank policy makers were divided over the timing of an interest rate hike.

In Europe, equities closed mostly lower, despite a surge in energy stocks after Royal Dutch Shell launched a bid for UK-listed BG Group.

And Asia traded positive in the morning.In the currency space, the dollar rises after the release of the Federal Reserve's meeting minutes.

Among commodities, Nymex crude steady after falling 7 percent yesterday as data showed the largest weekly increase in the US crude inventories since 2001. Brent crude trades around USD 56 per barrel. From precious metals space, gold prices slip towards USD 1200 an ounce.

Back home, Finance minister Arun Jaitley refused to budge over the Land Bill. He said the bill will determine India’s progress and added that government will put country before corporates.

Government divestment drive for the new fiscal is off to an electrifying start with REC offer-for-sale over-subscribed more than 5 times. Centre stands to mop up over Rs 1,500 crore from the 5 percent stake sale.