Money on the markets
A maturing market amid the mayhem
A battered government has some good news to cheer this week. First, rating agency Moody’s kept the country’s rating outlook at stable, providing a breather after two other global firms downgraded it to negative.
Goldman Sachs on Thursday upgraded Indian equities to ‘overweight’ from ‘market-weight’. The Wall Street investment bank has cited a recovery in growth and inflation moderation going ahead as reasons for its upgrade. It has set an end-2013 end target for the Nifty at 6,600 points, a 14 percent upside from current levels.
And there’s some more good news. Goldman said that economic growth is likely to accelerate to 6.5 percent in 2013 backed by favourable external sector demand outlook and a pick-up in domestic reforms.
All this is boosting sentiment on the street. The Sensex crossed 19,000 in trade on Thursday.
from Expert Zone:
(Rajiv Deep Bajaj is the Vice Chairman and Managing Director of Bajaj Capital Ltd. The views expressed in this column are his own and do not represent those of Reuters)
The rally in the Indian stock markets, fuelled by the so-called reform announcements, seems to have fizzled out. Frontline indexes have retraced more than 60 percent of the gains made since Sep. 13, 2012, the day the reform measures were made public.
Finance Minister P. Chidambaram is not the only one walking alone.
Duvvuri Subbarao, the Reserve Bank of India (RBI) chief, also seems to be on a solitary, and one hopes, contemplative walk.