Tuesday, June 19, 2012

India downgraded to BBB !







Adverse Saturn strikes, as Jupiter tries to redeem India ! 

Fitch has downgraded India to BBB, the lowest investment grade. From Stable
to Negative.

The Rating Agency siad the outlook reflected heightened risks that the
growth potential of India will deteriorate if reforms were not accelerated. Governance should be
improved. A more postive investment atmosphere should be built.

"India faces an awkward combination of slowing growth and still-elevated
inflation. India also faces structural challenges surrounding its investment
climate in the form of corruption and inadequate economic reforms," Fitch
said in a statement.

The negative outlook reflected India's limited progress in fiscal
consolidation and in reducing the deficit ( which stood at 185 billion, the highest in
recent years ).

Some positive factors

      The market will fluctuate as usual and it is now steady at 16 K. But
Jove in the 11th favours the enterprising. India and China are the two
economies growing. India has already become the third largest economy by GDP
PPP, estimated at 4.45 trillion USD. In real GDP terms, however, she is
11th. Her tourist receipts are more than 200 billion and will reach 375
billion in a couple of years. Her IT exports were 79 billion last year. So
India has great potential, along with China, who is growing at a faster
rate.

      In this context, the Indian stock market offers great opportunities
for the investor and this is implied by Jovian 11th Transit. Adverse factors
are represented by Saturn and high inflation and value erosion of rupee. So
be wise while investing. In the long term you will succeed but you will have
to wait and wait, as Saturn is adverse.

    S & P had warned India that India will lose her investment grade, if she
does not put pedal on reforms. These are the adverse Saturnine factors and
industrial development is the bullish Jovian factor !

      So we advise investors to enter at lower levels. Watch the market and
buy at declines. Buy only blue chips !

Gold Astrology

On the other gold is up at $ 1628 per ounce and INR 91258 ! We have been
advocating buying gold and other precious metals - silver, palladium and platinum.


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