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India gets a bad appraisal: S&P revises outlook to ‘negative’

April 26, 2012
Negative

New Delhi, April 26: Global ratings agency Standard & Poor's on Wednesday revised the outlook on India's long term sovereign rating to 'negative' from 'stable' - a thumbs down that could adversely affect the way foreign investors view India. S&P's decision questions the India story by citing its sliding growth numbers. It also cites the high fiscal deficit, a growing debt burden and the government's inability to push through economic reforms.

The agency clarified that the action was not a downgrade but a revision in the outlook based on the current economic situation. It said India's rating of BBB (minus) is the lowest investment grade rating. S&P's announcement immediately hurt sentiment in the financial markets and tripped shares, the rupee and bonds.

Experts say the revision in the rating outlook will hit investor sentiment, increase overseas borrowing costs for Indian companies and add another element of risk for Asia's third largest economy.

Finance minister Pranab Mukherjee intervened to calm jittery markets, saying the government would overcome the difficult phase. "There is no need for panic. The situation may be difficult, but we will be surely able to overcome," Mukherjee told reporters.

It also comes at a time when growth is slowing, business sentiment is down and the government is battling a string of issues from corruption, questionable laws like retrospective taxation to stinging criticism over stalled reforms.

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Agencies
July 30,2020

Kochi, Jul 30: The Kerala High Court on Thursday refused to grant the extension for the stay of a 74-year-old US citizen, Johnny Paul Pierce, who had earlier said that he felt safer to remain in India than in the United States amid the COVID-19 pandemic.

The single-judge bench of Justice CS Dias, which considered the writ petition, observed that the grant or extension of visa to foreign nationals fall exclusively within the domain of the Government of India (GoI) and that judicial review in such matters is minimal.

The power of the GoI to expel foreigners is absolute and unlimited, the bench said.

"In view of the categoric declaration of law by the Supreme Court, the plea of the petitioner to permit him to stay back in India cannot be accepted, as it falls within the purview of the guidelines and the discretion of the Government of India," the order said.

"The petitioner cannot be heard that the guidelines/policies/regulations formulated by the Government of India, that an American national though has been granted a visa having validity of five years has to leave India within 180 days, is irrational or unreasonable," it added.

The High Court, which was hearing a plea to permit the US citizen to stay in India for a further period of six months, said that the petitioner does not have a case that there is an infraction of Article 21 of the Constitution of India.

"The petitioner was well aware of the visa conditions when he arrived in India, and it is too late in the day for him to raise a grievance on the visa conditions," the bench said noting that the petitioner's love for India was heartening.

The High Court also directed the Foreigners Registration Officer to consider the petitioner's representation within a period of two weeks in accordance with the applicable guidelines and policies.

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News Network
March 23,2020

Bengaluru, Mar 23: Indian stocks plunged over 9% on Monday, as the rapidly spreading coronavirus pandemic sent major states including the country's capital into a lockdown amid increasing fears that outbreak could bring world economies to a grinding halt.

The NSE Nifty 50 index slipped 9.17% to 7,937.75 by 0408 GMT, while the S&P BSE Sensex was 9.42% lower at 27,093.24.

Over the weekend in India, the virus drove several companies to shut operations and the government sent states into lockdowns, bringing normal life to a grinding halt.

"Panic has gone up domestically because of the lockdown situation," said Vinod Nair, head of research at Geojit Financial Services.

"There is fear that the situation will not be brought under control soon."

The rupee hit a fresh record low of 76.05 against the dollar, as a flight into cash and worries about tightening liquidity boosted demand for the world's reserve currency.

Meanwhile, global markets crumbled, with MSCI's broadest index of Asia-Pacific shares outside Japan sliding nearly 4% as the global death toll climbed to over 14,000, further battering economic activity, and raising fears of a global recession.

After market hours on Friday, the Securities and Exchange Board of India halved position limits for certain stock futures, restricted short-selling of index derivatives and raised margin rates for some shares to curb "abnormally high" volatility amid the pandemic.

In domestic trading, the Nifty PSU Bank Index plunged 8%, while the Nifty bank index crashed nearly 10%.

The Nifty Auto Index slid 9% after several carmakers over the weekend suspended production due to the virus.

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News Network
January 31,2020

New Delhi, Jan 31: Nirbhaya's mother Asha Devi on Friday said she will continue her fight till the convicts in the 2012 gangrape and murder case are hanged, shortly after a Delhi court postponed the execution of death warrants till further order.

Devi told reporters her "hopes are dashed" but she will continue her fight.

"These convicts have no right to live. We keep getting disappointed by the system. I will continue my fight till the convicts are hanged," she said.

A Delhi court postponed the execution of death warrants of the four convicts in the Nirbhaya gangrape and murder case till further order.

Additional sessions judge Dharmender Rana passed the order on a plea by the convicts seeking a stay on their execution on Saturday, February 1.

Devi said because of the loopholes in law the "criminals' lawyers had the audacity to challenge me in court that they will not be hanged".

The black warrants for execution of the death sentence against Pawan Gupta, Vinay Kumar Sharma, Akshay Kumar and Mukesh Kumar Singh, were issued on January 17.

A 23-year-old physiotherapy intern who came to be known as "Nirbhaya" (the fearless one) was gangraped and savagely assaulted on the night of December 16, 2012, in a moving bus in South Delhi. She died of her injuries a fortnight later in a Singapore hospital.

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