Nifty99000 100%

Sensex99000 100%

Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: 5.0
Article rating: 3.3
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
RSS

News

Oil price biggest risk for Indian economy: Moody’s survey

Author: IANS/Wednesday, July 4, 2018/Categories: Economy

Oil price biggest risk for Indian economy: Moody’s survey

Mumbai, July 4 - A majority of Indian and foreign investors consider that high oil prices have emerged as a significant risk to the country's economy, Moody's Investors Service said on Wednesday.

The US rating agency's report is based on a survey of 175 respondents, including from over 100 financial institutions at the annual India Credit Conference in Mumbai and Singapore held in June.

Investors were asked questions on issues like top risks facing the Indian economy, fiscal deficit, the recapitalizsation package for public sector banks and credit conditions for Indian corporates among others.

"Most of the respondents highlighted high oil prices as the top risk while 30.3% of those in Singapore picked rising interest rates as the next top risk and 23.1% of those in Mumbai picked domestic political risks as the second top risk," Moody's Vice President Joy Rankothge said in the report.

Most respondents said they believed India would not meet the central government's fiscal deficit target of 3.3% of GDP for the current fiscal. 

While only 23.3% of the investors in Singapore and 13.6% in Mumbai felt that the fiscal targets would be achieved, 84.7% in Mumbai and 76.7% in Singapore expected some fiscal slippage.

On the government's bank recapitalisation plan, 85.7% in Singapore and 93.6% in Mumbai thought that it was insufficient to resolve the non-performing assets (NPA), or banks' bad loans, challenges.

In this connection, while 59.6% of the attendees in Mumbai thought that banks will be unable to raise capital from the markets, 32.1% in Singapore felt the same way.

Respondents in both locations said funding conditions will be one of the top factors driving the outlook for non-financial corporates - 38% in Mumbai and 34.6% in Singapore.

According to the report, 28% of respondents in Mumbai selected the resumption of capital investment as the second key factor affecting credit outlook while only 11.5% felt this way in Singapore.

In contrast, 26.9% of the Singapore attendees selected government policy and reforms as the second most important factor affecting the credit outlook, compared with 22% in Mumbai.

Print Rate this article:
No rating

Number of views (247)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free