Moody’s upgrade lifts market mood; Sensex up 236 pts, Nifty ends above 10,200


Benchmark indices ended higher on Friday after global rating agency Moody’s Investors Service upgraded India’s sovereign rating to Baa2 from Baa3 and changed the outlook to stable from positive.

This development that will give a big boost to Modi government, reduce the cost overseas borrowing and improve investments in India. Rating company, while justifying the upgrade said that the reforms undertaken by the government will “improve the business climate, enhancing productivity, stimulating foreign and domestic investment, and ultimately fostering strong and sustainable growth.”

The S&P BSE Sensex ended at 33,342, up 236 points, while the broader Nifty50 settled at 10,283, up 69 points.

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Nifty ends on Friday at 9,400 ahead of inflation data, up 1% for the week


 

Benchmark indices ended lower with the Nifty settling at 9,400 as investors turned cautious ahead of inflation data and booked profits in recent outperformers.

 

Consumer price inflation (CPI) is expected to have eased to a three-month low of 3.49% in April from 3.81% the previous month, according to Reuters poll. The government will also unveil the new series of Index of Industrial Production (IIP) as well as Wholesale Price Index (WPI), with 2011-12 as the base year, later in the day.

 

Both Sensex and Nifty hit record highs of in the previous two sessions, and were up more than 1% for the week. This is a second consecutive week of gains for the indices.

 

The S&P BSE Sensex ended at 30,188, down 62 points, while the broader Nifty50 settled at 9,401, down 21 points.

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RCom-Aircel Merger: The Real Story Is Promoter Fatigue & Pathway To Exit


Rcom Aircel.jpg

The original article written by R Jagannathan, Editorial Director, Swarajya and can be found here.

The big headline in business papers today – that Reliance Communications (RCom) and Aircel will merge to create a 50:50 joint venture between Anil Ambani and Maxis Communications of Malaysia – is not the real one. The real headline should read: “RCom-Aircel merger prepares ground for one partner to exit at the appropriate time.” It could, of course, be both partners exiting in favour of a more moneyed giant. It is a case of promoter fatigue.

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