Standard & Poor’s Ratings Services on Tuesday said it has raised India’s sovereign local currency credit rating to investment grade, with a stable outlook, citing strong economic prospects and an improving fiscal situation.

International ratings agency Moody’s Investors Service has an investment grade of Baa3 for India’s foreign currency debt but the domestic currency debt is still rated a speculative grade Ba2.

Fitch rates both India’s long-term foreign and local currency debt investment grade at BBB-.

India’s Debt Rating Raised to Investment Grade by S&P (Update3)
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Source: Bloomberg.com

S&P ups India’s ratings to investment grade
REUTERS
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Source: The Financial Express

S&P upgrades India’s rating to investment grade
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Source: The Economic Times

Malcolm Wood, Equity Strategist Asia-Pac of Morgan Stanley believes that liquidity is a challenge for Indian markets in spite of impressive earnings season and that may cause a correction in the markets. He also says that global liquidity conditions are no longer benign.

He adds that they have been underweight on India for sometime now, and that they would like to see Indian markets cool off a little.

Like to see Indian mkts cool off a little: Morgan Stanley
Excerpts from CNBC-0TV18’s exclusive interview with Malcolm Wood
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Source: Moneycontrol.com

The FIIs invested $18.69 billion net in 2005 and 2006 combined but that kind of money is already visible in real estate – over $ 17 billion, and counting.

Of the $ 17 billion heading towards the Indian property market, $ 7.78 billion has already been raised, and another $ 8.58 billion is in the pipeline.

Overseas real estate giants like Royal Indian Raj International, Blackstone Group, Goldman Sachs and others are likely to cumulatively bring in $8 billion of investments into the sector.

Indian real estate companies like GMR Infrastructure, Lanco Infratech, Parsvnath Developers and Sobha Developers have also been raising money from the public market and the biggest developer DLF is in the process to raise money through IPO.

Another source of quick money for the developers has been the Alternative Investment Market (AIM) on the London Stock Exchange.

Real estate funds are now set to rival FII flows
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Source: DNA Money

Indiabulls realty units to get Rs 1,055cr
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Source: Business Standard

Despite the quite start of 2007 with FII inflows, few stock specific deals have been struck. CLSA Capital Partners has picked up a stake in Sanghvi Movers, a mid-cap stock, investing USD 16.5 million in the company. Sanghvi Movers is the largest crane hiring company in India and with the potential huge amount of spends on infrastructure, CLSA feels that Sanghvi Movers would be a direct beneficiary.

CLSA’s other mid-cap picks are Everest Kanto, Havells India and Apar Industries

CLSA Capital Partners is the alternative asset management arm of CLSA Asia-Pacific Markets, Asia’s leading independent investment bank and part of one of the world’s top financial institutions.

Eyeing mid-cap buys: CLSA Cap Partners
Excerpts from CNBC-TV18’s exclusive interview with Gary Ng, Director, CLSA Capital Partners
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Source: Moneycontrol.com

Goldman Sachs has scaled up its estimates of India’s prospects in its widely known BRICs report that productivity growth will help India sustain over 8 percent growth until 2020 and become the second largest economy in the world, ahead of the US by 2050.

The report also forecasts that India’s GDP will surpass Italy, France and the UK by the middle of next decade (around 2015).

India to be ahead of US by 2050: Report
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Source: The Economic Times

India’s GDP to surpass UK by mid-next decade: Goldman Sachs
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Source: Zeenews.com

India’s GDP to be 2nd largest by ‘50: Goldman
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Source: Business Standard

There have been a net FII outflows to the tune of Rs. 552 crore between January 1 and January 15, 2007. Since 2001, the FII inflows have always been positive in the January 1-15 period. Strong Bull Run and stretched valuations are the key reasons for this lukewarm response of FIIs. Most of the other major Asian equity markets have had positive net inflows in the same period.

January Effect goes missing as FIIs play Scrooge this time
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Source: DNA Money

FIIs lie low in first 2 weeks of new year
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Source: The Hindu, Business Line

Indian economy showing signs of overheating: HSBC
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Source: Moneycontrol.com

Surveying the Asian economic landscape at a media interaction in Hong Kong on Thursday, HSBC chief economist (Asia-Pacific), Peter Morgan said of the Indian economy that it is showing a “fair degree of overheating”.

According to him, rising current account deficit, fiscal deficit and rising inflation are worrying factors.

‘Signs of excess’ in Indian economy
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Source: DNA Money

The growing inflationary pressures and increasing demand for credit are some of the factors which may push interest rates going forward.

In this scenario, what are the options for investors in Debt category? Investors should consider debt fund categories like Fixed Maturity Plans (FMPs), Monthly Income Plans (MIPs), Liquid and short-term floaters and Short-term Fixed Deposits (FDs) for investment in 2007.

Debt Funds: Where to invest in 2007
This article was written by Personalfn for Business India, and was carried in its January 14, 2007 issue with the title, “Gaining from debt”.
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Source: Personalfn.com

The wait is finally over for Gold Exchange Traded Funds (GETFs). SEBI has given approval to UTI Mutual Fund and Benchmark Asset Management Company to launch their GETFs. The schemes will be open ended and are proposed to be listed on the NSE.

Gold ETFs are products which track the price of gold in the spot market, will enable investors buy even smaller amounts of the metal, without concerns about quality and physical delivery.

Other AMCs which have filed offer documents with the SEBI for a Gold ETF include Kotak Mutual Fund.

Benchmark, UTI MF get Sebi nod for gold ETFs
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Source: The Economic Times

Benchmark AMC, UTI to float gold exchange traded funds
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Source: The Hindu Business Line

Yellow fever: Soon, you can buy paper gold on bourses
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Source: DNA Money

In his inaugural address at Petrotech-2007, the Petroleum Minister, Mr. Murli Deora conveyed that measures have been taken to make auto fuels environment-friendly and government plans to enhance the ethanol-blended petrol programme to 10 percent from the present limit of 5 percent.

“This year we will implement a five per cent ethanol blend by procuring an estimated 550 million litres of ethanol. We plan to enhance this programme to 10 per cent blend shortly,” he said.

Govt to enhance ethanol blended petrol programme
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Source: Moneycontrol.com

Deora focuses on affordable energy
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Source: DNA Money

Govt plans to enhance ethanol blended petrol programme
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Source: The Hindu Business Line