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.
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.
The outlook cut is based on a weak premise since the economy is expected to rebound this fiscal but a wake-up call was needed.
Lack of fuel security is a major constraint to the growth of the generation capacity, and the slow pace of tariff reforms is hindering infrastructure investment at the state-level.
Bond issue oversubscribed 15 times despite gloomy sovereign rating.
Rating agency says the country may lose its investment-grade status on growth concerns; finance ministry begs to differ
S&P also cut China?s GDP growth forecast to 7.5%t and that of rest of Asia.
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.
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.
Infy, L&T key movers while auto stocks dropped
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.
RBI had rescheduled the starting date for its implementation.
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.
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.
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.
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.
Global Finance announced its 20th Annual Ranking of the World's 50 safest banks.
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.
There is a "one in three" chance of a downgrade of the country's sovereign rating to junk status in the next two years.
Fiscal correction is needed even after the changes that have been made now, otherwise the fiscal deficit would tend to be high.
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'.
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.
Standard & Poor's has placed the sovereign ratings of 15 euro zone nations, including AAA-rated Germany and France, under 'CreditWatch'.
Confidence in the company as government is the biggest shareholder.
A day after Standard & Poor's (S&P) came out with its report on how India could be the first among Brazil, Russia, India and China (BRIC nations) to lose its investment-grade rating, markets shrugged off the concern, ending in the green.
The rating, however, is still five steps above junk status.
More pain likely, say analysts, with gloomy demand scenario and slowing economy.
"High inflation could derail India's stable macroeconomic and interest rate environment", Standard & Poor's said in a statement.
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.
The ratings are opinions that reflect the ability and willingness of the rated entity to meet financial obligations.
Volatility in exchange rates are also expected to increase.
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