Moody’s on Thursday slashed India’s growth forecast for the current year to 9.1 per cent from 9.5 per cent earlier. Moody’s said the government’s capital expenditure could be limited due to costlier fuel and increased fertilizer import bill.
The rating agency in its Global Comprehensive Outlook 2022-23 said that India’s growth rate may be 5.4 percent in 2023. The report said that Russia’s invasion of Ukraine could hurt global economic growth.
Moody’s said India is particularly sensitive to high oil prices. The report also said that since India’s production of food grains is high, agricultural exports will benefit in the short run from the rise in prices.
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JP Morgan downgrades the Indian stock market
JP Morgan has downgraded the Indian equity market to ‘underweight’. Explaining the reason behind this, JP Morgan has given commodity prices. At the same time, there is an atmosphere of suspicion around the world due to the war between Russia and Ukraine. Let us tell you, earlier the ‘Neutral’ rating was given by the organization.
The stock market closed with a jump on Wednesday. The Sensex had seen a rise of more than 1000 points.