Mumbai: The BSE Sensex rose by over 57 points in opening trade on Wednesday, extending yesterday's rally on sustained buying after Moody's upgraded its rating of the country's short-term foreign currency bank deposits to investment grade amid hopes of a rate cut by the RBI.

In addition, a firming trend on other Asian bourses supported the upside in stock prices here.

The 30-share benchmark index, which gained over 350 points in yesterday's trade, rose further by 57.28 points, or 0.30 per cent, to 16,222.37 in opening trade on Wednesday.

In a similar fashion, the wide-based National Stock Exchange Nifty index moved up by 10.60 points, or 0.22 per cent, to 4,860.15.

Consumer durables, banking, auto and metal stocks led the rise, helping the Sensex trade in positive terrain.
Brokers said there was a marked improvement in the trading sentiment after the rating of India's short-term foreign currency bank deposits was upgraded to investment grade by Moody's.

In addition, expectations of key interest rates being slashed by the RBI amid a firming trend on other Asian bourses, in line with overnight gains in the US, gave a boost to domestic equities in early trade.

Notification of 100 per cent FDI in single-brand retail by the government was another positive factor, they said.

Meanwhile, in Asia, Hong Kong's Hang Seng Index rose by 0.41 per cent, while Japan's Nikkei Index moved up by 0.22 per cent in morning trade on Wednesday. The Dow Jones Industrial Average ended 0.56 per cent higher in Tuesday’s trade.

(Agencies)