In an optimistic move, S&P Global Ratings, after a gap of about 10 years, has upped India’s outlook to positive from stable on robust growth prospects for next three years and rising quality of Government spend. It also raised hopes for an upgrade in two years provided the government continues reforms and policies to keep fiscal deficit under check. Retaining India’s sovereign rating at the lowest investment grade of ‘BBB-’, S&P said it expects broad continuity in economic reforms and fiscal policies, irrespective of the election outcome. Results of the ongoing general elections will be announced on June 4. Last in 2014, S&P had upped India’s outlook to stable from negative.
It said ‘Our positive outlook on India is predicated on its robust economic growth, pronounced improvement in the quality of government spending, and political commitment to fiscal consolidation. We believe these factors are coalescing to benefit credit metrics’. Irrespective of the June 2024 general election results, S&P expects the incoming government to carry on economic reforms to support the ‘growth vigor’, continued infrastructure investment drive, and commitment to fiscal consolidation.
The rating agency also said ‘We expect sound economic fundamentals to underpin the growth momentum over the next two to three years. Regardless of the election outcome, we expect broad continuity in economic reforms and fiscal policies’. It said the composition of government spending has been transformed, with an increasing share going to infrastructure. This will ease bottlenecks to put the country on a higher growth trajectory. It said India’s robust economic expansion is having a constructive impact on its credit metrics.
The positive outlook reflects S&P’s view that continued policy stability, deepening economic reforms, and high infrastructure investment will sustain long-term growth prospects. S&P noted that the Indian economy has staged a ‘remarkable comeback’ from the COVID-19 pandemic. It forecasts India’s real GDP growth at 6.8 per cent this year, which compares favourably with emerging market peers amid a broad global slowdown. The agency estimates real GDP growth in the past three years to have averaged 8.1 per cent annually, the highest in the Asia-Pacific region.
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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