Rating agency Moody’s has given a big blow to India on the economy front. Actually, Moody’s has reduced his outlook about India from ‘stable’ (static) to ‘negative’. Due to this decision of the rating agency, the Indian stock market saw fluctuations throughout the day.
The 30-share index of the Bombay Stock Exchange reached a new record level of 40,749.33 points during the Sensex business. But at the end of trading, it fell 330.13 points, or 0.81 per cent, to close at 40,323.61. Talking about the Nifty, it dropped 103.90 points, or 0.86 per cent, to close at 11,908.15.
At the end of trading, Sun Pharma shares closed down 4.23 percent. At the same time, Vedanta lost 3.39 percent, while ONGC, TCS, HUL and ITC closed down more than 2 percent. Apart from this, NTPC, Asian Paint, Infosys, Bajaj Finance, Tata Motors, Tata Steel, Powergrid, Axis Bank and Maruti were down by more than 1 percent. Meanwhile, the shares of Yes Bank, IndusInd Bank, ICICI Bank, Kotak Bank, Tech Mahindra and HCL Tech rose up to 3.76 per cent.
Major Setback by Moody’s on Economic Front
Let us tell you that the global rating agency Moody’s has given a negative change in outlook, giving a blow to India. The rating agency said that the government has partially failed to overcome the slowdown on the economic front. Due to this, the risk of remaining below economic growth has increased.
According to news agency PTI, the rating agency has estimated the government’s fiscal deficit at 3.7 percent of gross domestic product (GDP) in the current financial year. This is well below the government’s target of keeping the fiscal deficit at 3.3 per cent. Revenue growth has been projected to be weak due to sluggish economic growth and sudden cuts in corporate tax.