A man walks past the Bombay Stock Exchange (BSE) building in Mumbai.
A man walks past the Bombay Stock Exchange (BSE) building in Mumbai.Reuters

Indian stock markets surged Tuesday after rating agency Moody’s reaffirmed India’s rating outlook as stable while the firm trend in Asian peers also added to the sentiment.

The 30-share BSE Sensex surged 1.36 percent or 251.79 points to 18,788.02 and the 50-share NSE Nifty gained 1.28 percent or 72.05 points to 5707.60. 

Markets opened on a positive note after Moody's said that the outlook on its Baa3 rating for India is stable, citing the country's strong economic growth along with high savings and investment rates as supportive of the rating.

Sentiment was also supported by the firm trend in Asia. Asian stocks mostly advanced Tuesday as concerns over eurozone debt crisis eased after the eurozone finance ministers and the International Monetary Fund (IMF) agreed to release the much-needed bailout funds for Greece.

All the 13 sectoral indices were trading with gains. Realty sector climbed 2.42 percent and consumer durables surged 1.71 percent while banking sector gained 1.56 percent.

In the banking sector, HDFC Bank surged 2.71 percent and Indusind Bank surged 2.59 percent while Yes Bank gained 2.52 percent.

ONGC shares gained 0.66 percent on news that the company plans to take over U.S. energy-firm ConocoPhilips' 8.4 percent stake in Kashagan oil field in Kazakhstan for $5 billion.

The overall market breadth was positive with 1599 advanced against 861 declines. The BSE's Midcap Index surged 1.06 percent to 6734.15 and Smallcap Index advanced 0.78 percent to 7172.58. CNX midcap Index surged 1.06 percent and CNX IT rose 0.92 percent.