It believes that there had been "little progress" in structural reforms.
Rating agency says the country may lose its investment-grade status on growth concerns; finance ministry begs to differ
While the rating cut will raise borrowing costs for the US government, companies and consumers, Indian educational institutes fear it may also impact recruitment plans of international companies.
Markets will watch the policy meeting on June 18 and 19 for clues to a rollback of stimulus measures. Fed officials are divided over their ultra-easy monetary policy and some warn it could stoke future inflation and financial instability.
Bond issue oversubscribed 15 times despite gloomy sovereign rating.
India deserves a rating upgrade in view of improvement in macro-economic situation, the conservative outlook of Standard & Poor's notwithstanding, Finance Minister P Chidambaram said.
S&P also cut China?s GDP growth forecast to 7.5%t and that of rest of Asia.
While retaining India's sovereign rating at 'BBB-' with a negative outlook, S&P said there is at least a one-in-three likelihood of a downgrade within the next 12 months.
Late-recovery led by rate sensitives and capital good stocks; banks shares slip on profit booking.
In a string of bold initiatives, the government, accused of a 'policy paralysis', first announced a steep 12 per cent, or Rs 5 per litre, increase in the regulated diesel prices on Thursday and a cap on subsided cooking gas usage.
The rating of Egypt has been cut one notch from 'BB-' to 'B+'.
Responding to what is widely felt by the political establishment in Europe to be the "destabilising" role played by credit ratings agencies in the ongoing euro zone crisis, the European Commission unveiled measures to curb their power.
Differing with the downgrade accorded by Moody's, leading ratings agency Standard & Poor's has upgraded the Indian banking sector saying its domestic regulations are in line with international standards.
Global Finance announced its 20th Annual Ranking of the World's 50 safest banks.
The broader markets were positive with mid-caps and small-caps gaining 0.4-0.6 per cent on the BSE.
The S&P warning was largely a repeat of comments made to Reuters in late August, and no missiles were reported to have landed in Syria, but Indian investors were so unnerved that the reports exacerbated a sell-off in the rupee and local stocks.
Leading index provider Standard & Poor's on Thursday announced the launch of currency indices - Indian Rupee index and Chinese Renminbi index. Global investors would get access to the currencies of the two emerging economic superpowers, it will also serve as a reliable and relative benchmark for currency performance. The indices will replicate the performance of the Chinese Renminbi & the Indian Rupee versus the US Dollar. The indices will also have an excess return version.
Banking shares led the free fall and dragged almost all major European indexes down with them.
Ratings agency Standard & Poor's on Monday cautioned that it could lower the sovereign ratings of countries like India, Japan and Malaysia, which 'are still to come out of the economic meltdown of 2008'.
India's economic condition is just a notch above that of Greece. The next phase could be of a "sovereign default" similar to Greece, said Arun Jaitley, Leader of Opposition in Rajya Sabha.
Retaining India's sovereign rating at the lowest investment grade, global agency S&P on Tuesday warned that a downgrade is likely for the country if its political climate worsens and pace of fiscal reforms slows down.
Standard & Poor's on Wednesday lowered the stand-alone credit profile of two government-owned lenders- the State Bank of India and Union Bank of India citing concerns over their asset quality and high credit cost.
"High inflation could derail India's stable macroeconomic and interest rate environment", Standard & Poor's said in a statement.
Standard & Poor's has placed the sovereign ratings of 15 euro zone nations, including AAA-rated Germany and France, under 'CreditWatch'.
Keen to prevent a downgrade of India's sovereign rating by Standard & Poor's (S&P), which could trigger an exodus of foreign investors, Prime Minister Manmohan Singh has told the Congress party there is no option but to raise diesel prices by at least Rs 5 a litre after the Presidential election. The current diesel subsidy is Rs 9.13 per litre sold.
The rating, however, is still five steps above junk status.
More pain likely, say analysts, with gloomy demand scenario and slowing economy.
Citing economic slowdown and political roadblocks to policy-making, rating agency S&P on Monday warned India could become the first BRIC nation to lose investment-grade rating.
British telecom giant Vodafone could face a downgrade in its credit rating by Standard and Poor's if its proposed bid for Hutchison Essar Ltd exceeds $19 billion, a media report said in London.
RBI had rescheduled the starting date for its implementation.
Hazare-led campaign has got wide publicity in the US media.
Both Europe and the US can learn a lesson from American history to overcome their debt problems.
Volatility in exchange rates are also expected to increase.
Finance minister said India had taken several measures to make markets attractive.
The downgrade reflects its opinion that the fiscal consolidation plan which Congress and the administration recently agreed to "falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics."
Bank stability is an ever-more pressing concern for the world's corporations and investors says Global Finance, while announcing the half-yearly update of its ranking of the world's 50 safest banks.
The announcement by Standard & Poor's (S&P) on Wednesday to cut its outlook for India from stable to negative should cause no surprise, even though it comes barely five days after a similar exercise by Moody's, which had retained its outlook on India as stable.
Market breadth on the BSE was rather unhealthy with 1,436 stocks having declined against 973 advancing ones, on the BSE.
Nine Indian Americans among Outstanding 50 Asian Americans in Business this year.
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