Global rating agency Moody’s upgrade on India to Baa2 from Baa3 and outlook to stable from positive sent stock prices soaring on the stock exchanges to the delight of investors after recent corrections when people were beginning to doubt the bull run witnessed of late. The euphoria and frenzy though may die down and investors should be cautious at these levels where the markets have run up ahead of times. Some stocks have even gone up multifold times and the decline too could be deeper in many of such stocks which are operator driven.
Rating agencies outlook is just an indication and not a guarantee of good things to follow. Inflation is our country’s greatest concern and unemployment too is a real problem today. Several people have lost jobs in the telecom sector and it is gloomy in other areas as well. Demonetisation and GST have slowed down the economy though its benefit could be reaped in future years. Affordable housing remains a distant dream and realty sector facing a crisis. Our dynamic PM Modi is taking bold decisions and the intentions too are honest but ground realities takes its own time to improve and one should be cautious on the markets and not just go frenzy on ratings which can change like fashion!
(The views expressed by the author in the article are his/her own.)