Downgrade Warning
S&P affirms negative outlook on India, says chances of downgrade remain
Ratings agency Standard & Poor's affirmed India's sovereign rating at "BBB-minus" with a "negative" outlook, reiterating there was a one-in-three chance of a ratings downgrade over the next 12 months, a statement said on Friday. Full Article
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MARKET EYE WEEKAHEAD-India GDP, parliament key for FX/debt
* Indian bonds and forex markets will closely monitor
developments from the winter session of parliament currently
underway for signs of the government's resolve to pass key
legislation.
* September-quarter gross domestic product data on Friday will
also be a key trigger, with growth seen slowing to its lowest in
nearly a decade for the year ending in March.
* Debt traders are also keenly awaiting to see whether the
central bank will buy bonds from the open market after repo
borrowings from the central bank surpassed 1 trillion rupees for
eight consecutive sessions.
* The absence of open market operations could push the 10-year
bond yield towards 8.27 percent.
* The rupee could weaken further and touch 56 levels
next week after hitting its lowest since early September.
* However, RBI may intervene to prevent further weakness in the
rupee, while dollar demand from importers in the last week of
the month will also be watched.
KEY FACTORS/EVENTS TO WATCH:
Sat-Sun: BANCON, an annual banking conference in Pune, to be
attended by senior officials including RBI deputy governors.
Wed: Markets closed for holiday
Thurs: Money supply data
Fri: India July-Sept GDP data, bank credit, and forex reserves
(swati.bhat@thomsonreuters.com /
swati.bhat.thomsonreuters.com@reuters.net)
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