India regains 'stable' outlook from S&P on Modi reform agenda
India regained its "stable" rating from Standard and Poor's on Friday, more than two years after an embarrassing downgrade, in a validation of Prime Minister Narendra Modi's ambitious agenda of economic and fiscal reforms.
S&P had cut India's "BBB-minus" rating to "negative" in April 2012, leaving it on the verge of a "junk" rating. That came to symbolize plummeting investor confidence because of corruption cases and a perception of the political paralysis of the then Congress-led government.
But foreign investor confidence has returned after Modi was elected in May, pledging to revive investments and boost growth. He will travel to the United States later on Friday on his first visit as prime minister, and has meetings lined up with 17 U.S. corporate chiefs.
"The stable outlook for the next 24 months reflects our view that the new government has both the willingness and capacity to implement reforms necessary to restore some of India's lost growth potential, consolidate its fiscal accounts, and permit the Reserve Bank of India to carry out effective monetary policy," S&P explained.
"We could raise the rating if the economy reverts to a real per capita GDP trend growth of 5.5% per year and fiscal, external, or inflation metrics improve. Conversely we may lower the rating if the government's structural reform agenda stalls such that economic growth does not accelerate, or fiscal and debt ratios fail to improve," S&P cautioned.
S&P expects the government to meet its stated fiscal consolidation path. "CAD has improved in recent years post gold import curbs. We see little foreign exchange or roll-over risk for the government," it added.
Commenting on same, Bimal Jalan told ET Now, "S&P upgrading India's outlook is a big positive. I am glad that S&P recognises India's potential to invest & grow." "India's FDI policy regime is stable which attracts investors," he added
Prime Minister Narendra Modi on Thursday defined FDI as he sees it. "For Indians FDI is First Develop India...for foreigners, it is an opportunity," the PM said to an audience of CEOs that packed Delhi's Vigyan Bhawan, where Mr Modi launched his ambitious "Make in India" campaign
The campaign, he said, "is the step of a lion." The logo is a striding lion made of cogs, symbolising manufacturing, strength and national pride. The Make in India campaign aims at turning the country into a global manufacturing hub by smoothening business processes and attracting foreign companies to set up factories in India and invest in the country's infrastructure. The focus, on creating jobs and helping the "poor reach the middle class faster," said the PM
>>> Nifty Daily - As Posted on Last Weekly Review <<<
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Wrote last week if 8160 unable to cross then may fall down till 7860. See what happened.
>>> Nifty - Daily - Happened and Yet to <<<
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Unable to cross above 8160 and sell triggered. Price made a low of 7841.8 and took support on the trend line as shown on the above chart. If the trend line holds, upmove should continue next week.
>>> Nifty Hourly - As Posted Last Weekly Review <<<
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Above chart explains the possibilities of falling towards 7860, See what happened.
>>> Nifty Hourly - Happened and Yet to <<<
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As Said last week Nifty down to 7842. The fall was marked as wave C and it was 127.2% of wave A. If the above marking is not wrong, then the pitchfork should support the bulls next week also. Expect more recovery. We are long since 7920 from friday.
>>> Bank Nifty Daily <<<
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One of the possibility was given above in bank nifty. If the above count and chart is not wrong, then expect a big bounce from the friday's low.
>>> Bank Nifty - Hourly <<<
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Again you can understand the importance of channel. Wave 2 completed as a-b-c. If the channel holds next week, get ready to see a good rally to emerge with fresh buying + short covering.
>>> Rcom <<<
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No Comment. We are Long in this counter.
>>> NMDC <<<
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Long in NMDC too. Keep Buying.
>>> Performance till 26th Sep, 2014 <<<
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