Newsmakers: Moody's on India, Mkt bounces back and more

Global economy not at risk of recession despite China weakness: Goldman
The global economy is not at a risk of a recession in spite of recent concerns over China's economy and weakness in commodity prices, Goldman Sachs said, although it lowered its short-term outlook for global stock markets. "The drop in commodity prices during the past year and recent economic and foreign exchange weakness in China and other emerging markets will not tip the global economy into recession," analysts at the US investment bank said in an August 24 dated note to clients, which was seen by Reuters.

PM Modi concerned over call drops, seeks speedy resolution
Prime Minister Narendra Modi on Tuesday expressed serious concern over the issue of "call drops" and asked officials about steps being taken to address the problem. Communications Minister Ravi Shankar Prasad, meanwhile, assured operators that the government will do all that is required to help them reduce the problem.

Now, Moody's says India's economic potential high
Precisely a week after it lowered India's growth forecast for this year, Moody's on Tuesday said the country's economy reflected some growth potential and even hinted at a ratings upgrade it sees some progress in reforms and macroeconomic indicators. "India's Baa3 government bond rating reflects strong growth potential of its large and diverse economy, balanced against recurrent inflation, high fiscal deficits as well as regulatory and infrastructure constraints on competitiveness," Moody's Investors Service said.

RBI rate cut hinges on yuan devaluation, US Fed action: DBS
Global factors such as fallout of China's move to devalue its currency and clarity on the US Fed action may impact RBI's policy action next month, a DBS report says. "If recent depreciation pressure on the rupee persists, we suspect that the central bank will be wary of lowering rates further," DBS said in a research note.

Sensex, Nifty bounce back from 1-year lows
The BSE Sensex and Nifty bounced back from their lowest levels in a year as markets were seen as oversold. Sentiment on Dalal Street was also positive after the government said it would make another attempt to pass the Goods And Services Tax (GST) Bill. Parliamentary Affairs Minister Venkaiah Naidu told reporters on Tuesday that the government might reconvene Parliament to try to pass the GST Bill after it failed to clear the Rajya Sabha earlier this month.