June 2, 2020 / 4:16 AM / a month ago

Kotak Mahindra helps Indian shares hold on to gains after ratings cut

BENGALURU, June 2 (Reuters) - Indian shares held on to gains for a fifth straight session on Tuesday as advances in Kotak Mahindra Bank helped offset the impact of a ratings cut by Moody’s, citing slow economic growth.

The NSE Nifty 50 index was up 0.98% at 9,922.85 by 0405 GMT, while the S&P BSE Sensex rose 1.01% to 33,638.43. The indexes rose over 2% on Monday.

Moody’s Investors Service downgraded India’s credit rating to a notch above junk on Monday, citing a prolonged period of slow growth in Asia’s third-largest economy, rising debt and persistent stress in parts of the financial system.

The downgrade follows data last week that showed economy grew 3.1% in January-March period, its slowest quarterly pace in at least eight years.

Meanwhile, Asian stocks eked out gains on Tuesday as investors’ focus on the prospects of a global coronavirus recovery won out over familiar worries about Sino-U.S. relations and the depth of economic damage.

Kotak Mahindra Bank Ltd rose 4.6% after a report on Monday that promoter Uday Kotak will launch a 60 billion rupees block deal to meet Reserve Bank Of India regulations. (Reporting by Nallur Sethuraman in Bengaluru; Editing by Arun Koyyur)

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