Shriram Finance gets rating upgrade from S&P, stock spurts 

Shares of Shriram Finance Ltd rose over 3% on Tuesday after global rating agency S&P upgraded the company's rating and senior secured notes. Shriram Finance stock gained 3.61% intraday to Rs 645.60 against the previous close of Rs 623.10 on BSE. Market cap of the firm stood at Rs 1.20 lakh crore. Later, the stock closed 2.79% higher at Rs 640.50 on BSE. 

Total 0.88 lakh shares changed hands amounting to a turnover of Rs 5.61 crore on BSE.

In terms of technicals, the relative strength index (RSI) of Shriram Finance stood at 59.2, signaling it's trading neither in the overbought nor in the oversold zone. Shriram Finance stock has a one-year beta of 1.6, signaling very high volatility during the period.

Shriram Finance shares have fallen 10.41% in six months but gained 39% in a year.

S&P upgraded Shriram Finance to 'BB+/B' from 'BB/B' to reflect its view that the company would benefit from a strengthening regulatory environment, particularly for upper-layer fincos in India, and maintain its financial profile.

The stable outlook reflects the rating agency's view that Shriram Finance will sustain its financial profile over the
next 12 months. S&P also expects the company's asset quality to be manageable over the period.

"The stable outlook reflects our view that Shriram Finance will sustain its financial profile over the next 12 months. We also expect the company's asset quality to be manageable over the period," said S&P.