S&P Global Ratings brightened up a stressed Indian summer
Published On: Thursday, June 11, 2020 | By: Team KnowMyStock
S&P Global rating yesterday (10th June 2020) brightened up a rather stressed Indian summer, endorsing New Delhi’s ability to regain over the long term its leadership status as a global growth powerhouse that deserved to draw more foreign funds than any other competitors. The affirmation of North Block’s long-term ratings by S&P should prompt more global fund inflows into Asia’s third-biggest economy, where assets remain relatively inexpensive despite their recent climb from late-March lows. The immediate impact of S&P’s stamp of approval on India’s long-term prospects will likely be felt in the bond and currency markets. Global investors sitting on the sidelines will now be comforted and can commit fresh allocations, given that the risk of India slipping into sub-investment grade is mitigated,” say experts.
“This is a very positive move against the context of the stress induced by the pandemic and is a much-needed pat on the back of the efforts of the Indian government,” they felt.
S&P has reportedly made a balanced decision, taking into consideration both the macro parameters and the strong democratic framework.
The rupee was a tad stronger yesterday to close at 75.59 versus 75.61 a dollar a day earlier.The rating affirmation added to the positive rupee sentiment. Also the exchange rate stability could well attract more overseas investors.The rupee is likely to trade in the range of 75-76 a dollar, dealers said. The US Federal Reserve’s statement will now be keenly watched.
Tags: S&P Global Rating
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