Sensex rallies & more than 100 stocks hit fresh 52-week high on BSE post Moody's upgrade

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26 Aug, 2025 12:21

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The S&P BSE Sensex rallied as much as 414 points in trade on Friday after global rating agency, Moody’s upgraded India's sovereign credit rating by a notch to 'Baa2' with a stable outlook citing improved growth prospects driven by economic and institutional reforms.

Tracking the momentum, more than 100 stocks on the BSE hit a fresh 52-week high which includes names like Jubilant FoodWorks, Voltas, ICICI Bank, Tata Global Beverage, Bank of India, KPIT Technologies, Radico Khaitan, Polaris Consulting etc. among others.

Benchmark indices are still far away from their lifetime higher despite strong rally seen in the last two trading sessions but as many as 43 stocks on the BSE hit a fresh record high which includes names like 3M India, Chola Finance, Graphite India, IFB Industries, Indian Bank, SIS, Venky’s, Vakrangee etc. among others.

A Large part of the rally was driven by short coverings after Moody’s upgrade tilted the sentiment in favour of bulls. The rating upgrade comes after a gap of 13 years - Moody's had last upgraded India's rating to 'Baa3' in 2004. In 2015, the rating outlook was changed to 'positive' from 'stable'.

The 'Baa3' rating was the lowest investment grade -- just a notch above 'junk' status.

The upgrade will help India attract more funds especially from a foreign investor or pension funds who have a mandate to invest in markets with a minimum investment grade rating. It will help reduce borrowing cost for India Inc.

"The rating upgrade does a lot more good for currency and bond markets. However, it does pull in a lot of fence-sitters who were waiting on the other side looking for an opportune time to enter the market here. So, it will certainly drive more liquidity into equities," Nilesh Shah, MD & CEO of Envision Capital said in an interview with CNBC-TV18.

The Nifty50 which is now back above 10,300 has rallied over 200 points in two trading sessions. Many stocks on the NSE rose up to 20 percent on Friday. As many as 66 stocks on the NSE rose to a fresh 52-week high.

Stocks which rose to fresh 1-year high include names like United Spirits, Dalmia Bharat, Venky’s, Jubilant FoodWorks, IFB Industries, Minda Industries, Saregama India, Graphite India, Voltas, Tejas Networks, GNA Axles Ltd. Among others.

The Nifty index is trading well above its crucial short-term moving averages which is a bullish sign. It witnessed a breakout in the previous session and is all set to take out its all-time high placed near 10490.

The Nifty index negated its formation of lower highs – lower lows and gave a reversal after seven trading sessions on Thursday. Formation of a bullish candle in the previous trading session suggested that a short-term bottom process is in place.