Equity indices open lower after Moody’s downgrades India outlook

Mumbai: Equity benchmark indices were on a weak wicket during early hours on Friday as investors reacted negatively to Moody’s changing India’s outlook to negative from stable.

The agency, however, affirmed the Baa2 rating. Moody’s decision reflects increasing risks that economic growth will remain lower than in the past.

At 10 am, the BSE S&P Sensex was down by 76 points at 40,577 while the Nifty 50 edged lower by 25 points to 11,988. Sectoral indices at the National Stock Exchange were mixed with Nifty pharma down by 0.7 percent and FMCG by 0.4 percent.

Among stocks that lost were UPL, Bharti Infratel, Sun Pharma, Tata Steel and GAIL.

However, Yes Bank gained by 2.5 percent while ICICI Bank and IndusInd Bank ticked up by 1.7 percent each.

Meanwhile, Asian stocks rallied to near record highs after China said it has agreed with the United States to cancel tariffs in phases.

MSCI’s gauge of stocks across the globe rose slightly to stand at 543.70 while Tokyo’s Nikkei jumped 0.75 percent to a 13-month high.