The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Rating upgrade further fuels rising market

When Moody's boosted India's rating on January 21, it added fuel to a stock market already breathless from its steep climb last year. Citing India's strong external payments position and progress on peace talks with Pakistan, the rating agency raised India's long-term foreign currency rating to investment grade; India still has a non-investment grade ratings from other agencies.

India's economy is expected to grow at around 7% in the fiscal year to March. Forex reserves are at a record $103 billion. The rupee is rising steadily against the US dollar and foreign portfolio investors pumped in $6.7 billion last year, pushing the benchmark Sensex up over 100% since May 2003.

Hoping to reap the political rewards of a healthy growing economy, the Indian government is set to announce national elections early this year. Prime minister Atal Behari Vajpayee told a meeting of businessmen on January 12 that he hoped a new government would be in place by April this year.

The cryptic response of finance minister Jaswant Singh to the Moody's upgrade was "better late than never", adding that it should help Indian companies lower their cost of borrowing. Singh has done his bit for them.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree