* BSE index up 0.1 pct; NSE index rises 0.2 pct
* Healthcare stocks fall
MUMBAI, April 9 (Reuters) - Indian shares were up on Thursday, rising for the fifth straight session and heading towards the highest close in three weeks, as lenders such as ICICI Bank ICBK.NS gained after rating agency Moody's upgraded India's sovereign ratings outlook.
Moody's revised India's sovereign ratings outlook to "positive" from "stable" on Thursday as it expected actions by policymakers to enhance the country's economic strength in the medium term. ID:nL4N0X61EL
A firm trend across the region also helped. Asian stocks rose extending the previous session's gains, while the dollar drew support from minutes of the Federal Reserve's last meeting showing the U.S. central bank was still on course to hike interest rates this year. MKTS/GLOB
"The ratings (outlook) upgrade will give more comfort for foreign investors and also attract more capital. Our fiscal deficit situation is under control and global investors are comfortable with that. The market undercurrent is positive," said Deven Choksey, managing director, KR Choksey Securities.
The benchmark BSE index .BSESN was up 0.11 percent at 28,740.71, while the broader NSE index .NSEI gained 0.17 percent to 8,729.30.
Lenders gained with the Bank Nifty index .NSEBANK of the NSE adding 1.8 percent after the ratings upgrade. The key banking sub-index is down 7.2 pct since Jan-end on concerns over valuations and expected delay in earnings recovery. ID:nL4N0X61NK
ICICI Bank ICBK.NS gained 1.6 percent, State Bank of India SBI.NS added 0.9 percent and HDFC Bank HDBK.NS was up 1.3 percent.
Broader gains were however capped as healthcare stocks fell with Sun Pharmaceutical Industries SUN.NS falling 2.7 percent after Bank of America (NYSE:BAC) Merrill Lynch (BoFA-ML) downgraded several pharma stocks. ID:nL4N0X61XB
BoFA-ML downgraded Sun Pharma to "underperform" from "buy", while it cut Lupin Ltd LUPN.NS amd Cadila Healthcare CADI.NS to "neutral" from "buy". Lupin and Cadila were down 2.9 percent and 1.3 percent, respectively.