The improved outlook on the Government of India announced by rating agency Moody's might need to be viewed with some scepticism. There is no doubt the performance of the Indian economy has sharply improved from the deep trough it hit last year. But the ability of the second largest global ratings agency to assess an upside and downside before events make everyone wise about India has been dismal for a long time, as the chart shows.
India must announce liberal policies to attract foreign investors.
FM should avoid proposals such as to tax financial transactions and fringe benefits
'The market movement will be largely driven by earnings growth.'
FPIs, which are holding large exposures in Indian debt, could also be expected to book some capital gains as yields slide down
Top gainers among the S&P BSE Sensex include GAIL, Dr Reddy's Laboratories and Bharti Airtel, all edging up by 1% in late morning deals
Budget has laid emphasis on enhancing expenditure in farm & rural, and social sector including healthcare, education, skill development, job creation and infrastructure
The Reserve Bank on Monday eased norms for structuring of existing long-term project loans to infrastructure and core industries, to revive stalled plans and help banks tide over mounting bad loans.
To do so, the government will have to tackle a number of broad development challenges successfully, says Shankar Acharya
Slow pace of reforms in India is disappointing: Faber
Former RBI Governor Subbarao blamed Chidambaram for undermining the autonomy of RBI and putting pressure on him to cut interest rates.
The average rating was seven out of 10.
So, what does 2016 have in store for the Indian markets? Will they be able to take a giant leap forward in the leap year, and what are the key risks?
HDFC twins, Axis Bank, ICICI Bank and SBI from the financial space gained between 1-2.7%.
Global economy will have to grapple with few tough situations in 2015.
'In a serious fiscal situation like this, an ostrich-like focus on annual budgeting, event management and defensive rhetoric will only make matters worse,' warns Rathin Roy.
RBI is expected to slash rates by 150 basis points till end-December 2016.
If the new governor can think out of the box even as he signals that he can bat for the RBI cadre and respect its institutional memory, that will go a long way in getting out of the current impasse.
India's first quarter GDP growth print was 7.9 per cent y-o-y, primarily led by urban consumption demand
Sensex witnessed the biggest single day gain since May 2009 in absolute terms.
The advanced economies have been experiencing their longest period of slow growth.
Dreams must be accompanied with a reality check on what they actually imply.
'Wherever in the world there is political instability, those countries are beset with severe crises today. But India is in a much better position than the rest of the world due to the decisions taken by my government in the national interest,' President Droupadi Murmu said in her address to both Houses of Parliament.
Accommodative monetary policy has driven a bull market in stocks in recent years, but the Bank of England is expected to raise interest rates early next year and the U.S. Federal Reserve not long after, tempering future gains.
Being one of the early commentators to flag economic slowdown and caution investors on corporate earnings, Gautam Chhaochharia, head of India research, UBS Securities, in an interview with Hamsini Karthik says the markets remain in an expensive zone despite the recent correction.
The economists, who were surveyed, also felt it will take time for banks to make any further reduction in deposit rates
While Arun Jaitley remains part of the decision making process, Piyush Goyal, who was given additional charge on May 14, attends cabinet meetings and takes the day-to-day decisions.
The panel will also recommend a fiscal consolidation road map for the central and state governments, study the impact of GST on the divisible pool, and propose performance-based incentives for states.
Well then, what did DeMo achieve? As predicted by most economists, the volume of transactions fell, economic activity was adversely impacted, and some sectors (which were more dependent on cash transactions) witnessed greater disruption than others, says Rahul Khullar.
Moody's has a 'Baa3' rating for India, with a positive outlook.
Trade between India and Indonesia stands at $20 billion.
India remains an attractive destination and the recent sell-off has made valuations attractive in the large-cap space.
Markets ended higher for the second straight session mainly on the back of upbeat corporate earnings.
'Retail investors have been selling since the Budget and Foreign Portfolio Investors started selling.' 'Thus far, domestic institutions have picked up the slack, buying enough to keep the major indices from falling off a cliff.' 'However, there has been carnage in smaller stocks and the financial sector has been hit much harder than the major market indices,' points out Devangshu Datta.
For 2017-18 and 2018-19, investors are better off focusing on the quality of measures announced in the Budget and outside it rather than on the Budget numbers themselves, says T T Ram Mohan.
'The outlook for private investment, which has been such a weak link for India for so long, remains challenging.'
India's fiscal deficit trends are a bit like an alcoholic trying, unsuccessfully, to reform. Virtue does not last for too long, says Shankar Acharya.
India's macroeconomic environment is improving, but it is still not past the point where it can ignore the developments in the global markets
There will very little direct impact from the US Fed's rate hike this time, as we are well prepared both to handle liquidity, outflow of FII funds and managing our currency. But that doesn't mean India will be out of the woods anytime soon, says M V Subramanian.
