Indian shares snap three-day fall after S&P raises India to 'stable'

MUMBAI (Reuters) - Indian shares rose on Friday to snap a three-day losing streak as rate-sensitive stocks such as IDFC Ltd jumped after Standard and Poor's raised India's sovereign credit outlook to "stable" from "negative".

The S&P said the government mandate and improved political setting offered a conducive environment for reforms in Asia's third largest economy.

Friday's gains were not enough to avert the first weekly fall for stocks in seven weeks due to concerns over the top court's scrapping of most coal block allocations since 1993, the government delaying a hike in gas prices and foreign investors selling in each of the last three sessions.

IDFC provisionally rose 3.3 percent, while Axis Bank ended higher 3.5 percent.

The benchmark BSE index <.BSESN> provisionally closed 0.6 percent higher, while the broader NSE index <.NSEI> gained 0.7 percent.

(Reporting by Abhishek Vishnoi; Editing by Prateek Chatterjee)