Currently, there are lots of negatives news, events and circumstances related to Indian Market such as
India’s Rating
- India has lowest Investment grade rating by rating agencies (BBB-). One more downgrade will change its status to non-investment grade i.e. Junk
- S&P has negative outlook on India i.e. there is higher probability of downgrade than upgrade
- Fitch recently change the outlook on India from stable to Negative
Indian Economy
- RBI keeping Interest rate very high (highest amongst emerging markets)
- Inflation is very high due to supply related issues
- Decreasing GDP growth rate
- Increasing Budget deficit
- Deteriorating foreign exchange reserves
- Devaluation of Rupee from 49/$ to 56/$ in 5 months
Indian Government
- Political deadlock/problems related to coalition government
- Corruption
- Policy deadlock
- Delay in implementation of Direct Tax Code (DTC), Goods and Service Tax (GST), Company Laws Bill, International Financial Reporting Standards (IFRS), etc.
- Uncertainty about GAAR provisions
- Uncertainly about review of DTAA with Mauritius and other tax haven countries
International
- Greece, Spain and other PIGS countries debt problem and probability of default
- Eurozone crisis due to inter linking of debt
- Struggling developed economies (including USA) and declining growth rate in emerging countries (including China)
- Devaluation of currency of emerging economies (Brazil’s currency depreciation is worse than Indian Rupee)
And more………
So, what you think, Would you invest in India under these circumstances???
