Standard & Poor’s Upgrades Indian Banking Sector Contrary to Moody’s Downgrades

The downgrade of Indian banking sector from stable to negative by Moody’s shaken the Indian equity market and as result of this downgrade the Indian banking sector stocks faced huge selling pressure and the prices of the stocks of almost every bank fell.

Contrary to the Moody’s downgrade, it’s competitor in rating market today the leading rating company Standards & Poor’s has upgraded the Indian banking sector on the basis of strict and stringent domestic banking regulations and proper enforcement by the Reserve Bank of India.

This upgrade in rating by S&P is expected to improve the attractiveness of Indian banking sector stocks in domestic as well as international markets. But at the same time this upgrade is expected to create huge confusion in minds of investor as which rating they should rely upon. In such condition it is better to wait and watch and take decision depending on the situation instead of being carried by the market sentiments. Also I hope that the recent fall in the banking sector stock on the basis of Moody’s rating had nothing serious and market will understand it.

4 Responses to “Standard & Poor’s Upgrades Indian Banking Sector Contrary to Moody’s Downgrades”

Trackbacks

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: