Most of the Asian equity markets are trading in positive territory today. Japan’s Nikkei 225 trading higher by 135 points and Hong Kong’s Hang Seng surged 81 points. While bucking the trend China’s Shanghai Composite slipped 3 points. The European markets eked out gains on Tuesday, as investors sentiment received a lift from the news that Greece agreed to a bailout deal, while US stocks ended their previous session with modest gains.
Meanwhile, share markets in India have opened the day marginally higher following positive global cues from Wall Street. The BSE Sensex is trading up by 62 points while the NSE Nifty is trading up by 27 points. The BSE Mid Capindex opened up by 0.9% while BSE Small Cap index has opened the day up by 0.4%.
Barring FMCG stocks, all sectoral indices have opened the day in green with stocks from power sector and realty sector leading the gains. The rupee is trading at 64.21 to the US$.
In the latest development, it was reported that, global rating agency Fitch Ratings has kept India’s sovereign rating unchanged at ‘BBB-‘, the lowest investment grade with a stable outlook, citing a weak fiscal position and difficult business environment.
According to the report, India is not immune to external shocks, but country’s strong external finances make it less vulnerable than many of its peers, but weak public finances continue to constrain India’s ratings.
Fitch Ratings, at the same time, acknowledged India’s positive GDP growth outlook that stands out among peers. It said that the country’s real Gross Domestic Product (GDP) is expected to accelerate to 7.7% in 2017-18.
Meanwhile, the government and some commentators in India have been questioning ratings assigned by global rating agencies arguing the country’s fundamentals have improved significantly over the last few years, but this had not been taken into account by the rating firms.
Leave A Comment