Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Is a rating upgrade on the cards?
Thu, 18 Apr Pre-Open

It was not so long ago when several global rating agencies had given negative outlook on India. Some had even threatened a downgrade to junk rating! A combination of factors viz; widening fiscal deficits, slowing growth and persistently high inflation plagued the country's sovereign rating outlook.

However the recent correction in global commodity prices, seems to be ray of hope in this tough time.

India's current account deficit had widened to 6.7% of GDP for the quarter ended December 2012. This was largely attributable to the rise in import bill for of oil and gold. These outpaced exports of goods and services by a huge margin. The exports were also impacted as the rupee dollar rates made Indian goods more expensive and less competitive in the global markets, thus resulting in bloated deficit.

With the recent fall in commodity prices, the import bill for gold and crude oil is expected to shrink, thus narrowing the current account deficit (CAD) gap. Plus fall in inflation may also prompt the Reserve Bank of India (RBI) to cut interest rates. This will not only increase demand in Indian markets but also stimulate investments and GDP growth.

These signs of revival, if sustained, should offer some comfort to global rating agencies. We would therefore wait and watch if the downtrend in commodity prices brings in a possibility of rating upgrade for India.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Is a rating upgrade on the cards?". Click here!


Views on News

My Latest Stock Recommendation (Fast Profits Daily)

Oct 9, 2020

How I picked an exciting stock using trends from both the commodity and equity markets.

Data is the New Oil but It's Also the New Sugar. Here's How to Fight it (Profit Hunter)

Jun 1, 2020

Is too much data hurting your quest for market beating returns?

Quantum Mutual Fund: Hum woh nahi hain (The Honest Truth)

Apr 29, 2020

Ajit Dayal on how the mutual fund industry robs you of your wealth.

This One Trigger Could Turnaround Yes Bank's Stock Price (The 5 Minute Wrapup)

Oct 16, 2019

If Yes Bank manages to do this, it could be the start of a much-needed turnaround for the bank.

Gold could Hit 40,000 Sooner Than Expected (Profit Hunter)

Aug 16, 2019

Domestic gold prices are firing on both engines now. Gold prices could touch 40,000 faster than you could imagine.

More Views on News

Most Popular

It's the Beginning of a New Bull Phase in Smallcaps (Profit Hunter)

Feb 24, 2021

Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.

Make Rs 5,000 Per Day Trading the Market (Fast Profits Daily)

Feb 25, 2021

In this video, I'll show you how to get started on the path to daily trading profits.

I Believe the Investment of the Year Will Be...

Feb 19, 2021

In this episode, ace trader Brijesh Bhatia talks to us about the best investments of 2021, his profitable trading system, and much more.

The Hidden Tesla in My Great Indian Wealth Project (Profit Hunter)

Feb 23, 2021

An Indian company founded three decades ago in a garage caught my attention...


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms