Banks rally as Moody's upgrades India's rating

State Bank of India (SBI), Punjab National Bank, Bank of Baroda, ICICI Bank, Canara Bank, Axis Bank, Allahabad Bank, IDBI Bank, Bank of India and Syndicate Bank were up 2% to 4% on the NSE

Banking shares are on a roll with the Nifty Bank index hitting new high, while Nifty PSU Bank index rallied 4% in early morning trade as Moody's upgraded the Government of India's local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive.

Reacting the development, Nifty Bank index, which consists private and public sector banks, hit a new high of 25,890, up 2% on the National Stock Exchange (NSE) in intra-day trade. The index surpassed its previous high of 25,696 touched on November 7, 2017, in intra-day deals.

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