S&P revises India's economic outlook to negative - NewsX
- 5 years ago
Citing a slowdown in investment and economic growth which has widened the current account deficit, Standard and Poor's (S&P's) revised its outlook on India to negative. It affirmed BBB minus rating for India and warned that the country stands one out of three chance of a downgrade if external positions worsen. Rating agency S&P also said the government is likely to face headwinds in implementing policy reforms.
This news sent shock waves across market, sending Sensex down by more than 150 points. The rupee reacted by moving to 52.65 to a dollar. No sooner had the news spread, the finance ministry activated its damage-control machinery saying the S&P's has only waved a red flag and not downgraded India. While this might soothe ruffled feathers of worried investors, experts point out that unless the government delivers on reforms, a downgrade is imminent.
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This news sent shock waves across market, sending Sensex down by more than 150 points. The rupee reacted by moving to 52.65 to a dollar. No sooner had the news spread, the finance ministry activated its damage-control machinery saying the S&P's has only waved a red flag and not downgraded India. While this might soothe ruffled feathers of worried investors, experts point out that unless the government delivers on reforms, a downgrade is imminent.
For more log onto- http://alpha.newsx.com