Indian stocks surge on Moody's first upgrade in 14 years

19 November, 2017, 00:55 | Author: Gregory Stephens
  • MOODY'S UPBEAT

"Moody's has upgraded the government of India's local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive", the worldwide rating agency said in a release on Friday, adding that the government's wide-ranging economic and institutional reforms will improve the business climate and foster strong and sustainable growth. This upgrade puts Moody's one notch ahead of Fitch and S&P, which now has India on BBB- (stable), noted ANZ in a research report. Baa2 rating means investment grade with moderate credit risk, which is two notches above the junk grade.

"While a number of important reforms remain at the design phase, Moody's believes that those implemented to date will advance the government's objective of improving the business climate, enhancing productivity, stimulating foreign and domestic investment, and ultimately fostering strong and sustainable growth", it said.

Chief Economic Advisor Arvind Subramanian, whose Economic Survey had a piece on the "poor standards" of the rating agencies, echoed these sentiments, noting that the upgrade was long overdue.

Congress leader Kapil Sibal on Saturday said the upgradation of India's rating by United States credit rating agency Moody's was not in sync with the "mood of the people".

"On the fiscal front, efforts to improve transparency and accountability, including through adoption of a new Fiscal Responsibility and Budget Management (FRBM) Act, are expected to enhance India's fiscal policy framework and strengthen policy credibility", it said.

Indian stocks surge on Moody's first upgrade in 14 years

Railway Minister Piyush Goyal said the Government will stay on the path of good governance and focus on effective delivery to people.

Terming the ratings upgrade by Moody's as a "positive measure", SBI (State Bank of India) chairman Rajnish Kumar said it will make foreign funds cheaper for both corporates as well as his bank. The resolution of bank non-performing assets would be of supreme significance to revive the investment cycle and economic growth, stated ANZ. "The reform program will thus complement the existing shock-absorbance capacity provided by India's strong growth potential and improving global competitiveness".

"It is an upgrade that has happened after 13 years". Moody's cautioned that a material deterioration in fiscal metrics and the outlook for general Government fiscal consolidation would put negative pressure on the rating.The rating could also face downward pressure if the health of the banking system deteriorates significantly or external vulnerability increases sharply.

"Fiscal prudence has helped India to get Moody's upgrade", the finance minister said. While GST and demonetisation have undermined growth over the near term, real GDP growth will rise to 7.5 per cent in 2018-19 as disruption fades, it said. Ratings changes are very slow, infrequent and at most times move with a lag to market expectations, he said.


Recommended:

  • Reactions to Detroit Lions vs. Cleveland Browns game

    Reactions to Detroit Lions vs. Cleveland Browns game

    He had run for 20 yards to convert a third down on the drive, and hit tight end Seth DeValve with a 35-yard pass to the 1. To make the playoffs they'll need to play better than they did today, but they played well enough to beat the Browns.
    Vladimir Putin may meet Donald Trump in Vietnam

    Vladimir Putin may meet Donald Trump in Vietnam

    In September, after the World Anti-Doping Agency dismissed 95 cases of suspected Russian doping, citing lack of evidence, the U.S. Putin is also concerned about turnout in the March 2018 elections, Gabuev said.
    UCLA players arrested in China still waiting for official investigation

    UCLA players arrested in China still waiting for official investigation

    Asked later in the day whether he was anxious about his son, LaVar replied, according to ESPN: "He'll be fine, he'll be fine". UCLA coach Steve Alford said he will leave the three players out for this weekend's game against Georgia Tech in Shanghai.
  • Tesla unveils its electric Semi truck at last

    Tesla unveils its electric Semi truck at last

    But the triumphant launch event was tinged by the knowledge that Tesla's grand ambitions do not always deliver in reality. It's unlike anything you will see in a similar segment, and Tesla gets complete points for standing out in design.
    ME  unemployment dips to 3.5% in October

    ME unemployment dips to 3.5% in October

    Pennsylvania's nonfarm jobs count was down 4,300 from September's record high level to 5,973,800 in October. The rate drop reflected a decline in the number of unemployed Iowans to about 51,000 in October.
    The first hijab-wearing Barbie has made its official debut

    The first hijab-wearing Barbie has made its official debut

    Ibtihaj, who won the bronze medal in fencing at the 2016 Rio Olympics, was the first American to wear a hijab while competing. The first United States woman to compete at the Olympics in a hijab, Muhammad won bronze at last year's games in Rio.
  • Wanted: This pickup driver, whose sticker is 'disorderly conduct,' Texas sheriff says

    Wanted: This pickup driver, whose sticker is 'disorderly conduct,' Texas sheriff says

    In the end, the only way the decal is coming down is if the weather washes it away, says Fonseca's husband, Mike. Nehls wrote that he has received "numerous calls regarding the offensive display".
    Miranda Kerr pregnant with first child with husband Evan Spiegel

    Miranda Kerr pregnant with first child with husband Evan Spiegel

    Last year, before the model married the Snapchat co-founder, she told The Edit that her son, Bloom, and Spiegel got along well. Kerr, 34, and Spiegel, 27, were married May 27 at their Brentwood home after announcing their engagement in July 2016.

    3 dead, shooter killed in California school shooting

    After the shooting, Johnston said police recovered a semi-automatic rifle and two handguns believed to be used by the shooter . Schultz quoted another witness, Casey Burnett, who said the gunman was "driving around and shooting randomly from his auto ".
  • JC Penney Company Inc (JCP) How Do the Technical Vary?

    JC Penney Company Inc (JCP) How Do the Technical Vary?

    The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link . Following the transaction, the director now directly owns 518,970 shares in the company, valued at $1,889,050.80.
    Martellus Bennett may play through torn rotator cuff

    Martellus Bennett may play through torn rotator cuff

    Bennett caught 55 passes for 701 yards and had a career-high seven touchdowns on his way to earning a Super Bowl ring. While he is fourth on the team with 24 receptions for 233 yards, his biggest contributions came in the run game.
    Blake Lively is Unrecognizable While Filming Her New Movie

    Blake Lively is Unrecognizable While Filming Her New Movie

    Undressed and lookée such as Sunday's big break on the filming of her latest movie, Blake Lively is unrecognizable. In August, Reynolds shared a birthday message for his wife but cut her mostly out from the photo he shared.


Popular

Victoria's Secret partners with Balmain for Shanghai fashion show
A Victoria's Secret spokesman declined comment, referring questions about the model line-up to each woman's individual agencies. And that's bad news for these two celebs who have reportedly been denied visas because of past incidents of accused racism.

Wal Mart shares rise on Q3 beat
After a recent check, Wal-Mart Stores, Inc. "Announces Expiration and Final Results Of Its Cash ..." on November 06, 2017. Northwestern Mutual Wealth Management Company increased Wal ( WMT ) stake by 5.83% reported in 2017Q2 SEC filing.

White nationalist loses 'verified' status on Twitter
Most recently, some eagle-eyed Facebook users discovered that the alt-right social network Gab was advertising on the site . Blue badges are seen nowadays as a form of endorsement, as Twitter explains.

Visiting Lebanese patriarch meets Saad al-Hariri in Saudi Arabia
He said Arab mediation to resolve the crisis had failed. "You will see", Hariri wrote, without elaborating. In a followup phone call from Monaco with the AP Wednesday, Bahaa Hariri declined to comment further.

Mattel Stock Swells on Merger Talk
In fact, of the top-five toy items or toy lines out on the market right now, none of them are Hasbro or Mattel . A combination of the two companies would bring an impressive portfolio of brands under one roof.

Disneyland Shuts Down Two Cooling Towers After Legionnaires' Disease Outbreak
The two cooling towers are located in a backstage area behind the New Orleans Square train station area of the theme park. On Nov. 1, more testing and disinfection was performed and the towers were brought back into service on Nov. 5.

Will Ezekiel Elliott play in Week 10?
Ezekiel Elliott's six-game suspension was reinstated by a judge in the Southern District Court of NY on Monday, Oct. 30. Barring a last-minute maneuver, Elliott will begin his suspension when the Cowboys visit the Atlanta Falcons on Sunday.

Moyes: I think I'm a good manager
Despite all of that, West Ham have made a decision to hire Moyes as they hope to steer clear of relegation. The players have to take responsibility too and show they are good enough to play for the club.

Amazon reveals $50 Fire TV Basic Edition, shipping to 100 markets
The Fire TV Stick with Alexa Voice Remote only costs $40, and as its name suggests, comes with a remote that has Alexa built-in. In addition, customers can set their default language as Spanish, Brazilian Portuguese, French, Italian, German, or English.

Trump Actions on Protected Status Prompt Outcry from Latino Lawmakers, Advocates
TPS for Nicaraguans will end on January 5, 2019, and Hondurans have received a grace period until July 5 of next year. The largest group of TPS recipients are from El Salvador, The Washington Post has reported .