Kotak Mahindra helps Sensex, Nifty hold on to gains after ratings cutKotak Mahindra helps Sensex, Nifty hold on to gains after ratings cut
People walk past the Bombay Stock Exchange building in Mumbai

BENGALURU (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 Nifty was up 0.98% at 9,922.85 by 0405 GMT, while the 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)