Moody's rating goes against people's mood: Sibal

Ever since the government came to power in 2014 experts pointed out that the lower crude oil prices over the last few years had helped the government to significantly improve India’s macro economic indicators

Stock, bond and rupee markets gave a thumbs up to the rating upgrade with the Sensex and Nifty ending with more than 0.5% gains.

Moody's Investors Service, on Thursday, raised India's sovereign credit rating by a notch, from "Baa3" to "Baa2", and also revised upwards its outlook for the country from "positive" to "stable".

Finance Minister Arun Jaitley told reporters Moody's decision was a "belated recognition" of the steps the government has taken to fix India's $2 trillion economy.

Meanwhile, Congress communications in-charge Randeep Surjewala sought to downplay the rating upgrade, saying the same agency had miscalculated USA subprime mortgages before the economic meltdown.

The rating agency highlighted a number of genuine positive recent developments in India as justifications for a ratings upgrade - though its inclusion of demonetization among them should raise some eyebrows, Shilan Shah, an economist at Capital Economics, said. HPCL said the firm would benefit from both lower borrowing costs and a stronger rupee.

"Recognising India's continued progress under Hon'ble Narendra Modi ji Mo'dy's Investors Service has upgraded India's sovereign rating for the first time since 2004, citing the nat'on's economic and institutional reforms", tweeted Minister of State for Civil Aviation Jayant Sinha. "In fact, always the question was why the rating upgrade wasn't happening", said Mr Kumar.

"The reform program will thus complement the existing shock-absorbance capacity provided by India's strong growth potential and improving global competitiveness", it said. "Contrast the mood at Moody's with the mood of the people".

India's economic growth had slipped to an over three-year low of 5.7 per cent in the first quarter. It had in 2015 changed rating outlook to "positive" from "stable". HDFC Chairman Deepak Parekh said, "I've always felt India's rating was far below than what it should be".

"Other important measures which have yet to reach fruition include planned land and labour market reforms which rely to a great extent on cooperation with and between the states", it said.

"Markets should worry that the government now having received the ratings upgrade, may actually slacken and relax its commitment to reducing fiscal deficit, as per the stated plan - especially, at a time when investors seem to be worrying about the same as reflected in the increase in bond yields of more than 50 bps since August 2017,"said Mr Chari". "We should celebrate Moody's upgrade by holding a midnight ceremony in Central Hall of Parliament and damn Standard and Poor".

These measures increase the degree of formality in the economy, broaden the tax base (as with the GST), and promote expenditure efficiency through rationalisation of government schemes and better-targeted delivery (as with the DBT system) will support the expected, though very gradual, improvement in India's fiscal metrics over time, it said.

Related News:

  • Trump lauds passage of GOP tax overhaul

    Trump lauds passage of GOP tax overhaul

    President Donald Trump departs after a closed-door meeting about the tax bill with House Republicans on Capitol Hill. The House measure would collapse today's seven personal income-tax rates into four: 12, 25, 35 and 39.6 percent.
    Why Abercrombie & Fitch Stock Exploded Higher Today

    Why Abercrombie & Fitch Stock Exploded Higher Today

    Investors will be keeping a close eye on the stock during this session to see if the upward trend will remain throughout the day. Analysts on average had expected earnings of 22 cents and revenue of $818.9 million, according to Thomson Reuters I/B/E/S.
    J&K Police sub-inspector killed by militants

    J&K Police sub-inspector killed by militants

    Sources said Mugees belonged to Ansar Ghazwat ul Hind, an Al-Qaeda Kashmir cell headed by Zakir Moosa. Meanwhile, massive protests are being reported from Parimpora area of Srinagar .
  • David Cassidy in Critical Condition With Organ Failure: Publicist

    David Cassidy in Critical Condition With Organ Failure: Publicist

    A representative for David told Express.co.uk: "He was in an induced coma but he is now conscious and surrounded by family". His family are now said to be at the hospital to be by his side as his condition worsens.
    The NFL is not backing down from Jerry Jones' threats

    The NFL is not backing down from Jerry Jones' threats

    Regardless, the letter makes it clear other owners are disturbed with Jones' recent actions. Jones to support the committee's deliberations, not attempt to sabotage them".
    Embiid's career-high 46 lead 76ers past Lakers 115-109

    Embiid's career-high 46 lead 76ers past Lakers 115-109

    Brown before the game on the composure displayed by Simmons: "He really doesn't get rattled". He didn't play in the fourth quarter for a second straight game.
  • Pakistan's Mohammad Hafeez banned from bowling in global  cricket by ICC

    Pakistan's Mohammad Hafeez banned from bowling in global cricket by ICC

    Just 2 months after that he was once again reported for illegal action during a Test against Sri Lanka at Galle. This is not the first time the veteran Pakistani all-rounder has been banned from bowling in global cricket.
    Despite fluctuations, cost of Thanksgiving dinner to be less than $50

    Despite fluctuations, cost of Thanksgiving dinner to be less than $50

    While Farm Bureau does not make any scientific claims about the data, it is an informal gauge of price trends around the nation. That's roughly $1.40 per pound, a decrease of 2 cents per pound, or a total of 36 cents per whole turkey , compared to 2016.
    New Sunderland boss: Paul Heckingbottom could join Black Cats from Barnsley

    New Sunderland boss: Paul Heckingbottom could join Black Cats from Barnsley

    But he had considered backtracking on that promise before Sunderland persuaded him to head to the north-east. Coleman's future was uncertain after failing to reach next summer's World Cup in Russian Federation .
  • Huge fire rips through block of flats in NY

    Huge fire rips through block of flats in NY

    There are no reports of any serious injuries. "Upon arrival we found very heavy fire conditions on the top floor". He said firefighters would enter the building to search for the missing tenant as soon as it was deemed safe.
    Here's a sneak peek at Amazon's Black Friday sale

    Here's a sneak peek at Amazon's Black Friday sale

    The shopping bonanza will last all weekend, and is followed by Black Friday's online equivalent Cyber Monday on November 27. With so many customers, online and offline, looking for deals, few retailers feel they can afford to ignore Black Friday .
    WH on Franken, Trump Accusations: Franken 'Admitted Wrongdoing'

    WH on Franken, Trump Accusations: Franken 'Admitted Wrongdoing'

    Asked Friday why Trump hasn't kept his pledge to take his female accusers to court, Sanders demurred. Sanders was asked repeatedly by reporters about Moore, who has been accused of sexual misconduct.


Most liked

Bob Odenkirk and Catherine Keener join The Incredibles 2
In the trailer, a curious Jack-Jack finally discovers his powers, which excites Bob at first... but then high jinks ensue. The studio also released a new poster and photo from the long-awaited animated sequel.

Pochettino discusses project he can not wait to share with Tottenham fans
Levy is believed to be unwilling to sell to Manchester United, which would be considered as strengthening a rival. The midfielder has made just two appearances for Spurs this season - against Newcastle and Chelsea.

Trump Adds 5 Names to His List of Supreme Court Possibilities
The majority of nominees that have been announced have ties to the conservative group of lawyers. The White House on Friday released an updated list of 25 potential Supreme Court nominees .

Satellite promises to improve weather warnings
A rocket launch at Vandenberg Air Force Base had to be canceled at the last minute early Tuesday morning. The satellites will download their data to stations in the Arctic and Antarctic.

Murdoch's Fox in talks with multiple buyers for TV, film assets
Fox would retain the Fox News channel, sports interest other than its regional sports channels, and the Fox broadcast network. Comcast's prelude is astonishing provided the Justice Departments resilient perspective on AT&T-Time Warner.

Danica Patrick To Retire After Daytona 500, Indy 500 Next Year
Patrick was emotional during the announcement, and her family there with her was also in tears. She was the first woman to lead laps in the storied race when she led 19 as a rookie.

Oil Holds Losses Near $55 as US Production Extends Record Run
January WTI crude oil settled at $55.35, down $0.17 or -0.31% and February Brent crude oil closed at $61.29, down $0.47 or -0.76%. On Tuesday, the International Energy Agency cut its oil demand growth forecast by 100,000 barrels per day for both 2017 and 2018.

Stocks To Invest: General Electric Company (GE), Cheetah Mobile Inc. (CMCM)
A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Rhumbline Advisers has invested 0.46% in Wal-Mart Stores Inc (NYSE:WMT). 81,000 were reported by Nordea Invest Mgmt.

Tesla Unveils 2 Mind-Blowing New Vehicles -- What You Need to Know
The move fits with Tesla CEO Elon Musk's stated goal for the company of accelerating the shift to sustainable transportation. Tesla also has a lot on its plate right now with trying to deliver its new Model 3 to customers in a timely fashion.

Ashes squad: Selectors slammed as 'morons' after surprise calls
Paine is back after a seven-year absence but his selection was the biggest surprise in the 13-man squad for the opening two matches.

Kirsten Gillibrand Says Bill Clinton Should've Resigned Over The Monica Lewinsky Scandal
Gillibrand's remarks came during an interview for a New York Times podcast, "The New Washington", which will air on Saturday. Juanita Broaddrick is coming out with a new book detailing her rape allegations against former President Bill Clinton .

Serena Williams ties the knot in a star-studded affair
Colton Haynes , who was just recently married to husband Jeff Latham by Kris Kardashian , was also present for the celebration.

Rising trend of casino apps
For those who are looking for a specific game, Cherry Rush also includes a description of what games can be found each site. It used to be that if someone wanted to play a casino game they had to find a land based venue.

Bets for upcoming Southampton vs Arsenal fight
Neither Arsene Wenger nor his players could afford themselves to lose another match if they still want to be in the top four. Arsenal is still keeping the dream to be qualified in Champions League after the victory over Manchester on Sunday.

3 Entertaining Ways to Improve Your Business Skills over the Coming Weeks
In both games and business meetings you may feel everything from frustration to elation, but the trick is to keep is all hidden. Play Poker While millions of people around the world may play poker solely for fun, you can also play to up your business game.