Markets may be subdued this week after S&P rating, GDP data in focus
Mumbai: Indian markets stare at a week ahead when key data will be released on the quarterly report card of its economy. The sentiment may also be a bit subdued after credit rating agency Standard & Poor’s (S&P) maintained its rating on the country, contrary to expectations of an upgrade.
India is set to release its gross domestic product (GDP) data for the September quarter on 30 November. In the June quarter, economic growth unexpectedly slid to a three-year low of 5.7%.
After market hours on Friday, S&P kept its India rating unchanged at the lowest investment grade of BBB-, with a stable outlook, citing a sizeable fiscal deficit, high general government debt and low per capita income. The Narendra Modi government was expecting an upgrade following one by Moody’s Investors Service last week.
“Domestic fundamentals are better and a positive upgrade in rating by S&P could have provided further conviction to the sentiment of foreign investors,” Vinod Nair, head of research Geojit Financial Services Ltd, said in a note.
“Given a fail in the rating upgrade, INR could have a subdued opening next week impacting the performance of equity market in the near term,” added Nair.
Meanwhile, oil prices too, will be keenly watched. Brent crude rose 1.82% last week to $63.86 per barrel. For year to date, it is up 12.23%
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