Earlier Moody’s downgraded Indian Banking sector few weeks back. The same rating agency has sweetened the Indian economy when it needed some help as week rupee, huge fiscal deficit, and policy paralysis made things worse her in India. Its expected that this upgrade will help Indian economy inshort term as well as long term and some foriegn currency, mainly US dallor may come to India for better returns.
In recent report by Moody’s, the rating agency has upgraded Indian bonds to investment category from speculative. This is very important for Indian economy that is witnessing huge capital outflow and weak rupee. This will bring in money in bond sector from other countries mainly from the US where recently the money was going back from Indian and other countries in response to the European Union troubles for a safety purpose. With this upgrade, Indian economy may witness some positive capital inflow in the country. The stock market to responded positively yesterday to this report.