BSE Sensex and Nifty snapped their 3-day losing streak after global rating agency Standard & Poor's upgraded India's credit outlook to "stable" from "negative".
The Sensex ended 157 points higher at 26,626, after falling over 200 points at its day's low.
Indian stock markets suffered a selloff in the past three days due to weak global markets and weak investor sentiment following the cancellation of coal blocks and a delay in gas price hike decision.
The rupee rose to 61.02 per dollar today after the S&P revision and the pull-back in domestic equities. Rupee fell to 61.62 today tracking dollar's gains against major global currencies and weak Indian equity markets.
Standard and Poor's raised the outlook for India's "BBB-minus" rating back to "stable" from "negative," saying Prime Minister Narendra Modi government's "strong" mandate would allow it to implement fiscal and economic reforms.
The gains were led by rate-sensitive stocks. IDFC rose 3 per cent, while Axis Bank ended 3.1 per cent higher. Punjab National Bank rose 2.9 per cent, while State bank of India gained 2.8 per cent. DLF gained 4.5 pe rcent, Tata Motors advanced 1.3 per cent.
Hindalco Industries gained 5.4 per cent on value buying after slumping 9.2 per cent over the previous four sessions.
Sun Pharmaceutical Industries gained 4.2 per cent, marking its biggest single-day gain since August 20 on speculation of lower chances of an import alert for a unit. (With Agency Inputs)
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