INSUBCONTINENT EXCLUSIVE:
Analysts said market participants felt the economy has hit the bottom already and that is in the price.
Economists, though, believe the
effectiveness of government and policy in addressing long-standing economic and institutional weaknesses than it had previously estimated
This is leading to a gradual rise in debt burden from already high levels, it said
agencies do their job a little later, a little slower, but markets are ahead
Ratings agencies look into the rear-view mirror
But the market is looking positive because the government is responding at multiple levels across the entire spectrum
It may take a couple of quarters for the measures to show their effects
He said the government compromised growth in trying to keep the rating agencies happy all this while.
That excessive focus on fiscal deficit
is one of reasons behind slower growth, he said
They see nothing wrong in euro economies
trade at 40,584 after hitting a record high of 40,688 on Thursday.
Economists do believe the ongoing slowdown is here to stay for some time
While there are tailwinds in the form of counter-cyclical macro policies and the government's continued commitment to reforms, the triple
balance sheet problem has tightened credit conditions, hindered policy transmission, prolonged the balance sheet deleveraging process and
earnings downgrades amid re-rating of market multiples should lead to muted upside at an overall market level
The government has also proactively taken policy decisions in response to the global slowdown, it said
