News In Market

Research firm CLSA has downgraded its outlook on India. It said that India is now perceived as one of the riskiest markets as the fiscal risk has grown. It is weighing down the growth and rupee. CLSA said that the fiscal deficit is likely to rise to 14% in FY10. CLSA expects rupee at 57/$ in 2009. It sees interest rates falling another 150 bps in India. It expects GDP growth of 4.6% in FY10. CLSA further said that the cyclical growth slowdown is worsening. Credit growth is also slowing. Domestic economy will stabilize in early 2010, it added.