Moody's assigns a 'Baa3' rating on India, with a stable outlook.
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The depreciation of the rupee, it said, reflects the wider CAD as well as lower net capital inflows.
The land acquisition bill is a catalyst to investment and passing the bill will improve India's business environment.
Yes Bank led the laggard's list on the Sensex with a nearly 10 per cent drop after Moody's Investors Service downgraded the private sector lender's ratings. Other top losers were SBI, IndusInd Bank, Tata Motors, Mahindra and Mahindra and HDFC.
Moody's said domestic growth will offset global headwinds.
The global ratings agency, however, cautioned that high debt burden remains a constraint on the country's credit profile.
Moody's has a 'Baa3' rating for India, with a positive outlook.
India would be a major beneficiary of softer oil prices among the G20 economies as the country is a major crude importer.
Moody's on Monday slashed India's growth forecast for 2020 to 5.4 per cent from 6.6 per cent projected earlier, on slower than expected economic recovery. In its update on Global Macro Outlook, Moody's Investors Service said India's economy has decelerated rapidly over the last 2 years and economic recovery is likely to be 'shallow'.
Moody's expect RBI to hold policy 'repo' rate steady to have a neutral stance in this growth
Moody's rates a total of 15 public sector and private sector banks, which together accounted for about 66 per cent of the banking system's estimated total assets on March 2012.
Moody's expects the new government to increase the retail selling prices of controlled fuel products -- kerosene and liquefied petroleum gas -- to help control its subsidy burden.
RIL's profit before interest and depreciation increased by 8%.
"The 2017 state election results in India demonstrate broad-based popular support for the Indian government's policy agenda and will facilitate the implementation of further reforms, a credit positive for the sovereign," Moody's said in a statement.
Moody's expects that India will record the GDP growth of around 7.5 per cent in 2015 and 2016.
For 2020 calendar year, it reduced the estimate by a similar measure to 6.7 per cent.
Country's biggest lender State Bank of India had proposed merger of five associate banks.
Billionaire Gautam Adani's embattled conglomerate said its balance sheet is "very healthy" and is laser focused on continuing business momentum, as it looked to reassure investors to keep faith in the conglomerate despite a share rout triggered by a damning report by a US short-seller. Group CFO Jugeshinder (Robbie) Singh in an earnings call said the group is confident of its internal controls, compliance and corporate governance. Separately, it released a compendium of group companies to highlight that it has adequate cash reserves and has ability to refinance debt.
Monsoon is likely to be below normal in the current year at 93%.
India's top fuel retailers IOC, BPCL and HPCL together lost around $2.25 billion (Rs 19,000 crore) in revenue for keeping petrol and diesel prices on hold during elections in five states, including Uttar Pradesh, Moody's Investors Services said on Thursday. State fuel retailers did not revise petrol and diesel rates for a record 137 days despite prices of crude oil (raw material for producing fuel) rising to $120 per barrel compared to around $82 in early November when the hiatus began. "Based on current market prices, the oil marketing companies are currently incurring a revenue loss of around $25 (over Rs 1,900) per barrel and $24 per barrel on sale of petrol and diesel, respectively," Moody's said in a report.
Moody's Investors Service on Tuesday slashed India's growth forecast for the current financial year to 9.3 per cent saying that the second wave of coronavirus infections hampers economic recovery and increases risk of longer-term scarring. Moody's, which has a 'Baa3' rating on India with a negative outlook, said obstacles to economic growth, high debt and weak financial system contrain sovereign credit profile. The US-based rating agency had in February forecast a 13.7 per cent economic growth for the current fiscal (April 2021-March 2022).
Moody's Investors Service on Friday slashed its estimate of India's GDP growth during the 2020 calendar year to 2.5 per cent from an earlier estimate of 5.3 per cent, on account of the rising economic cost of the coronavirus pandemic.
Moody's said the asset quality of the banks will remain under pressure.
Family-owned companies like those of Tatas, Birlas and Ambanis are dominating the country's corporate landscape, but still face challenges regarding corporate governance norms such as appointment of successors and transparency in functioning, rating agency Moody's said. However, these companies have responded well to opportunities available in the fast-growing and liberalizing economy, according to a joint survey by Moody's Investors Service and its domestic associate.
RBI's announcement that it would tighten liquidity and re-emphasize its anti-inflationary monetary policy stance could come at the cost of slower short-term economic growth, according to Moody's.
Moody's Investors Service on Friday projected India's growth at zero per cent for the current fiscal and said the negative outlook on sovereign rating reflects increasing risks that GDP growth will remain significantly lower than in the past. The outlook also partly shows weaker policy effectiveness to address economic and institutional issues, it noted in the update to its November 2019 rating forecast.
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Moody's became the first rating agency to retain the sovereign rating of Baa3 for the country after the rupee dived below 63 to the dollar, on Monday.
The government's second round of stimulus will spur consumer spending in the near term but support to economic growth will be minimal, Moody's Investors Service said.
The government's fiscal deficits have reduced over the last five years.
In its quarterly monetary policy review on January 29, the RBI had announced a 0.75 per cent raise in the cash reserve ratio, or the amount banks need to park with the RBI, from 5 per cent earlier.
Moody's Investors Service has warned that India, along with the Philippines, Thailand, and Vietnam are highly vulnerable to volatile food and energy prices in the Asia-Pacific region as the Russia-Ukraine conflict continues to disrupt supplies and raise the cost of agricultural products, especially cereals and vegetable oils, as well as fertilizers and other agricultural inputs. This is so because these countries have a higher weighting of energy and food prices in their consumer price index (CPI) baskets, Moody's said in its report released on Tuesday. The weighting of energy and food in overall Indian CPI stands at over 55 per cent.
The note was authored by Faraz Syed, an associate economist with Moody's Analytics.
The Modi administration has been unable to initiate key reforms.
The US Fed on May 24 hinted at withdrawing its third round of quantitative easing, or bond buying programme, worth $85 billion each month, which began in the wake of the worst credit crisis in September 2008.
Moody's said it expects exposure to low oil prices to shave off 0.8 per cent from real GDP growth on average across oil exporting countries in 2016.
Moody's said implementation challenges, in addition to affecting growth and government revenues, will impact corporates by lowering sales volumes and cash flows.
India's political infighting is denting business confidence.
It is not just a mere coincidence that the change in the government's response happened when Chidambaram took charge.
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