Market Pulse News

Market Pulse

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12-May-2021   09:09 Hrs IST Moody's slashes India's GDP growth forecast to 9.3% for FY22 <p align="justify">Rating agency Moody's has cut India's gross domestic product (GDP) forecast for FY22 to 9.3 per cent from the earlier projection of 13.7 per cent. It also pointed out that a sovereign rating upgrade is unlikely in the near future. This is due to the rating agency believing that the quality of India's growth has also declined, alongside a marked slowdown in the rate of economic expansion in recent years. Also, it has pointed out that India's credit profile is increasingly constrained by obstacles to economic growth.</p><p align="justify">It said a high debt burden and a weak financial system remain among the primary obstacles to economic growth, with risks being exacerbated by the coronavirus pandemic. Policymaking institutions have struggled to tackle and contain these risks.</p><p align="justify">The latest cut in projections came in the wake of a severe health crisis nationwide, brought on by the second wave of the pandemic. Daily cases have remained above the 3-lakh-mark for the past 17 days in a row. However, it has raised its forecast for real GDP in FY23 to 7.9 percent as compared to 6.2 percent earlier. The long term real GDP growth has been pegged at about 6 percent.<br></p>
11-May-2021   09:20 Hrs IST India's economic growth may slip to 8.2% in FY22 if the second wave peaks in end of June: Crisil <p align="justify">Domestic rating agency Crisil has warned India's economic growth may slip to 8.2 per cent in FY22 if the second wave peaks in end of June, maintaining its baseline estimate of 11 per cent uptick in activity. The agency made it clear that the risks to its 11 per cent growth forecast are ‘firmly tilted downwards', and presented two likely scenarios. If the second wave peaks in May-end, the GDP expansion will come at 9.8 per cent, and can go down to 8.2 per cent in current fiscal if the peaking happens in June-end.</p><p align="justify">As per official estimates, the economy contracted by 7.6 per cent in FY21, because of the national lockdown. There have been a slew of downward revisions in growth estimates after the emergence of the second wave, which has overwhelmed the healthcare apparatus and also led to localised lockdowns across the country. It acknowledged the lockdowns are less restrictive right now, but the expanse of area under such measures is increasing with the ingress of the virus into the rural areas where healthcare infrastructure is weak.</p><p align="justify">It said the ongoing fiscal will be a story of two halves growth in the first one till September will be supported by a base effect despite the spread of the pandemic, while growth will be better spread in the second half stretching from October-March 2022. Besides, the agency said two ‘gigantic challenges' confront the country, including the spread of the second wave and vaccination. On the former, it said while the second wave have been bigger spreaders globally, but added that the death rates are falling in India with the rise in infections. However, India ranks lowest among fully vaccinated populations, it said, recommending that rendering jabs to half of the population by festivities in October would be good.<br></p>
10-May-2021   09:12 Hrs IST India's sovereign rating to remain at current level for next 2 years: S&P Global Ratings
07-May-2021   09:14 Hrs IST IMF to revisit economic growth forecast for India owing to surge in Covid-19 cases
06-May-2021   09:17 Hrs IST Re-emergence of COVID-19 pandemic may lead to economic slowdown in coming months: PHDCCI
05-May-2021   09:13 Hrs IST India's economic recovery to be hit by COVID-19 surge: S&P Global Ratings
04-May-2021   09:14 Hrs IST Recovery path for several sectors delayed owing to second Covid wave: India Ratings and Research
03-May-2021   09:15 Hrs IST GST collections in April touch record high of over Rs 1.41 lakh crore
30-Apr-2021   09:20 Hrs IST Private sector of India has to be key driver of growth: Rajiv Kumar
29-Apr-2021   09:18 Hrs IST Second wave of COVID-19 to dampen pace of recovery for corporate India: Icra