Moody's certificate on state of Indian economy not required, says Anil Singhvi; Market Guru comes hard as agency retains ratings despite upgrading outlook

India does not need a Moody's certification to know the state of its economy, Zee Business Managing Editor Anil Singhvi said. He said that the economy was strong and that was being reflected in the mood of the domestic stock markets. 

The comments were made in light of the credit rating agency's move not to revise its ratings even as it revised the outlook from 'negative' to 'stable'.  

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The international ratings agency had on Tuesday kept India's sovereign rating unchanged at Baa3, which is the lowest investment grade and just a notch above junk status.

It said that the recovery was underway in Asia's third-largest economy and growth this fiscal would surpass the pre-pandemic rate.

Singhvi said that it was completely its prerogative how it wanted to see the curent status of the Indian economy. 

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He said that the current development could be looked in two ways - the positive way to look at it is to see that the outlook has improved. While the negative way is to see that the ratings have not been revised upwards despite economy doing well and expectations of a revised ratings. 

He said that India's forex reserves have been growing and it now comes in top 5-6 countries for investments. He said that growth numbers were strong and revenues of the companies were good. 

He said that India has been able to control the impact of Covid-19 and the economy and life are now coming back to track.

The only difference which the Moody's certificate would have made by upgrading the rating is that because of it international borrowings, bonds purchased by India or if Indian government takes loan, then its interest rate would have come down and raising money would have become easy, he said.

The Market Expert said if the numbers would have been of Europe, Latin America, America then Moody's would have increased the rating. India has never made a default and has always stood strong and have paid money on time, he said.

He said that the international rating agencies are bit biased and hesitate to increase the ratings of India. He said that he is saying this statement after giving it a proper thought.

The Market Expert said that Indian companies are doing business at life-time high, they have orders which they say they have not seen such huge orders and demand in last 15-20 years.

We thought earlier that it is a pent-up demand but pent-up demand does not stay this long. We can see the hike in demand in real estate sector. Real estate is a sector which is the reflection of entire economy as around 500 types of industries are linked to it, he said.

He added that residential sales are at life time high, interest rate on home loans are at life-time low and the demand is strong so there is no need of Moody's certificate.