Citing a slowdown in investment and economic growth which has widened the current account deficit, Standard and Poor's (S&P's) revised its outlook on India to negative. It affirmed BBB minus rating for India and warned that the country stands one out of three chance of a downgrade if external positions worsen. Rating agency S&P also said the government is likely to face headwinds in implementing policy reforms. <br />This news sent shock waves across market, sending Sensex down by more than 150 points. The rupee reacted by moving to 52.65 to a dollar. No sooner had the news spread, the finance ministry activated its damage-control machinery saying the S&P's has only waved a red flag and not downgraded India. While this might soothe ruffled feathers of worried investors, experts point out that unless the government delivers on reforms, a downgrade is imminent.<br /><br />For more log onto- http://alpha.newsx.com
