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Moody's cuts India outlook to negative, predicts 'prolonged slower growth'
Posted on 8th November 2019
India’s credit ratings outlook was cut to negative by Moody’s Investors Service, the first step toward a downgrade, as concerns mount the economic slowdown will be prolonged and debt will rise.

Moody’s projects a budget deficit of 3.7% of gross domestic product in the year through March 2020, a breach of the government’s target of 3.3%, as slower growth and a surprise corporate-tax cut curbs revenue. The foreign currency rating was retained at Baa2, the second-lowest investment grade score.

India’s growth outlook has deteriorated sharply this year, with a crunch that started out in the shadow banking industry spreading to retail businesses, carmakers, home sales and heavy industries. Growth has come down to a six-year low of 5%, with Moody’s saying there’s a low chance of sustained growth at or above 8%.

“A prolonged period of slower economic growth would dampen income growth and the pace of improvements in living standards, and potentially constrain the policy options to drive sustained high investment growth over the medium-to long term,” William Foster, vice president of Moody’s Sovereign Risk Group, wrote in a statement.

The SGX Nifty 50 Index Futures declined 0.4% in Singapore as of 6:57 a.m. in Mumbai.

The dollar-rupee one-month non-deliverable forwards rose after the Moody’s statement.

The downgrade puts additional pressure on authorities to kickstart the economy, although they have limited room to move. The Reserve Bank of India has already cut interest rates five times this year, though lenders aren’t passing on that easing to customers.

Moody’s said it doesn’t expect the credit crunch among non-bank financial institutions, which were the main source of consumer loans in recent years, to be resolved quickly.

Investors will closely watch the nation’s gross domestic product data for signs of further, long-lasting weakness, which could result in another negative shift, according to Moody’s. Stabilization in the non-bank financial sector, meantime, would be credit positive and could flag less risk of negative spillover into banks.

“There have been some concerns about fiscal slippage,” said Shamaila Khan, director of emerging-market debt at AllianceBernstein in New York.

“If the government is able to maintain discipline and mitigate spending by doing more privatizations that could help allay these concerns. There’s a reasonable probability that that could happen, and this is a negative outlook so it gives them some time to play this out.”

Fitch Ratings and S&P Global Ratings still hold India’s outlook at stable.

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RIL net debt to dip with rights issue, Jio stake sale: Morgan Stanley
Posted on 3rd July 2020
Asset monetisation in Jio Platforms along with the $7 billion rights issue should reduce Reliance Industries Limited's (RIL) net debt by more than half, according to a report by Morgan Stanley.

It said that multiple catalysts are in play with faster than expected deleveraging, improving demand and margin outlook on refining and chemicals, top quartile earnings CAGR of 23 per cent over F20-23, and digitisation, supporting multiples.

India-China faceoff: PM Modi, CDS General Bipin Rawat reach Leh to take stock of situation
Posted on 3rd July 2020
Amid the ongoing faceoff between India and China along the Line of Actual Control (LAC), Prime Minister Narendra Modi on Friday made a surprise visit to Ladakh to take stock of the situation.

He was accompanied by Chief of Defence Staff (CDS) General Bipin Rawat and Army Chief General Manoj Mukund Naravane.

UP Police eliminates two criminals involved in killing of eight cops in Kanpur
Posted on 3rd July 2020
The Uttar Pradesh Police on Friday eliminated two criminals who were allegedly involved in the killing of eight police personnel in Kanpur, Inspector General, Kanpur informed.

During a combing operation following last night's encounter, two police personnel were injured and two criminals have been neutralised, Mohit Agarwal, IG Kanpur told mediapersons.

Intel Capital invests Rs 1,894 crore for a 0.39% stake in Jio Platforms
Posted on 3rd July 2020
Intel Capital will invest Rs 1,894.50 crore in Reliance Industries' Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion for a 0.39 per cent stake, said the two companies on Friday.

This will be the twelfth international deal for Reliance's digital arm in less than three months, taking the total investment amount to Rs 117,588.45 crore.

JSW group will bring down China imports to zero in 2 years: Parth Jindal
Posted on 3rd July 2020
As the clamour to boycott Chinese products grows amid a stand-off between the Indian and Chinese armies in eastern Ladakh, several companies have indicated they would cut imports from the neighbouring country and support the government’s self-reliance theme.

Parth Jindal, managing director of JSW Cement, said on Thursday that the JSW group, promoted by his family, would be bringing down its imports from China to zero within two years.

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