Indian stocks surged today, 3 October 2013, on expectations that the US government's partial shutdown could lead to the US Federal Reserve postponing tapering of monetary stimulus to the US economy. The rupee surged against the dollar. The barometer index, the S&P BSE Sensex, settled at over one-week high. The 50-unit CNX Nifty settled at its highest level in nearly two weeks. The Sensex jumped 384.92 points or 1.97%, up 318.10 points from the day's low and off 27.17 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Except BSE FMCG index, all the other sectoral indices on BSE were in the green.
Indian stocks gained for the second day in a row today, 3 October 2013. The Sensex has garnered 522.30 points or 2.7% in two trading sessions from a recent low of 19,379.77 on 30 September 2013. The Sensex garnered 760.05 points or 4.08% in September 2013. The Sensex has gained 475.36 points or 2.45% in calendar 2013 so far (till 3 October 2013). From a 52-week high of 20,739.69 on 19 September 2013, the Sensex has declined 837.62 points or 4.04%. From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 2,453.36 points or 14.06%.
Indian stocks today got a boost from expectations that the US government's partial shutdown could lead to the US Federal Reserve postponing tapering of monetary stimulus to the US economy. The US government's partial shutdown has sparked concern it will slow economic growth in the world's biggest economy. ADP's report on Wednesday, 2 October 2013, showing weaker-than-expected growth in US private-sector jobs in September also fuelled expectations that the Fed will hold off on reducing the amount of monetary stimulus in the near future. Boston Fed President Eric Rosengren, a consistent backer of record stimulus who votes on policy this year, said on Wednesday, 2 October 2013, that the central bank refrained from tapering its bond purchases last month because growth was lower than forecast and fiscal policy posed a risk to the outlook. The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
Capital goods pivotals gained for the second day in a row. Metal and mining stocks rose as the latest data showed China's official non-manufacturing Purchasing Managers' Index rose to a six-month high in September. Bank stocks rose across the board. Realty stocks gained for the second day in a row. Tyre shares were up across the board.
In the foreign exchange market, the rupee surged against the dollar tracking global dollar weakness. The partially convertible rupee was hovering at 61.81, sharply higher than its close of 62.46/47 on Tuesday, 1 October 2013. Indian financial markets were closed on Wednesday, 2 October 2013, on account of Mahatma Gandhi Jayanti.
The S&P BSE Sensex jumped 384.92 points or 1.97% to settle at 19,902.07, its highest closing level since 24 September 2013. The index jumped 412.09 points at the day's high of 19,929.24 in late trade. The index gained 66.82 points at the day's low of 19,583.97 in early trade.
The CNX Nifty jumped 129.65 points or 2.24% to settle at 5,909.70, its highest closing level since 20 September 2013. The index hit a high of 5,917.60 in intraday trade. The index hit a low of 5,802.70 in intraday trade.
The total turnover on BSE amounted to Rs 1859 crore, higher than Rs 1501.20 crore on Tuesday, 1 October 2013.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,471 shares rose and 937 shares fell. A total of 152 shares were unchanged.
The BSE Mid-Cap index rose 1.38% and the BSE Small-Cap index rose 0.85%. Both these indices underperformed the Sensex.
Among the sectoral indices on BSE, the S&P BSE Metal index (up 3.94%), the S&P BSE Bankex (up 3.41%), the S&P BSE Capital Goods index (up 2.82%), the S&P BSE Oil & Gas index (up 2.46%), the S&P BSE IT index (up 2.39%), the S&P BSE Auto index (up 2.38%), the S&P BSE Teck index (up 2.27%), the S&P BSE Realty index (up 1.99%) outperformed the Sensex.
The S&P BSE PSU index (up 1.76%), the S&P BSE Power index (up 1.57%), the S&P BSE Consumer Durables index (up 1.42%), the S&P BSE Healthcare index (up 0.96%) and the S&P BSE FMCG index (down 0.88%) underperformed the Sensex.
Among the 30-share Sensex pack, 27 stocks rose.
Index heavyweight Reliance Industries gained 2.64% to Rs 844.
Coal India rose 2.04%. The company said after market hours on Tuesday, 1 October 2013, that Coal India and its subsidiaries achieved 99% of targeted production at 33.16 million tonnes in September 2013. The company achieved 103% of targeted offtake at 35.79 million tonnes in September 2013.
Index heavyweight and cigarette maker ITC fell 1.17% to Rs 338.90.
FMCG major Hindustan Unilever (HUL) extended Tuesday's losses triggered by its parent company Unilever Plc issuing a warning on Monday, 30 September 2013, that it now expects underlying sales growth of just 3% to 3.5% in the period as against estimates of 6% as a slowdown in its emerging markets accelerated in the July-September quarter. The stock was off 1.87%.
Unilever attributed the emerging markets slowdown to a significant currency weakening. Unilever said developed markets remained 'flat to down,' representing no change to its previous forecast.
In April-June quarter, Unilever had reported underlying sales growth of 5% with volume growth of 3%, while Hindustan Unilever's (HUL) domestic consumer business grew at 7% with 4% underlying volume growth.
Metal and mining stocks gained as latest data showed China's official non-manufacturing Purchasing Managers' Index rose to a six-month high in September. China is the world's largest consumer of copper and aluminum. Tata Steel (up 3.57%), Sail (up 7.09%), Jindal Steel & Power (up 3.92%), Hindalco Industries (up 4.29%), Hindustan Zinc (up 1.48%) and Bhushan Steel (up 0.16%), gained.
Sesa Sterlite surged 7.1%. The stock was the biggest gainer from the Sensex pack.
Bank stocks rose across the board. Among private bank stocks, HDFC Bank (up 4.14%), Yes Bank (up 5.05%), Axis Bank (up 5.83%) and ICICI Bank (up 2.85%), gained.
Kotak Mahindra Bank rose 1.95%. The bank early this week said that the bank has decided not to transfer any SLR security from AFS/HFT to HTM as permitted under Reserve Bank of India (RBI) circular though there is sufficient headroom to do so. Reserve Bank of India, vide its circular dated 23 August 2013 had, as a onetime measure, permitted banks to transfer SLR securities from AFS/HFT to HTM category during the current year up to the limit of 24.50% of net demand and time liabilities (NDTL). To mitigate impact of mark to market losses incurred by banks due to abnormal market conditions, the RBI also gave banks the option of valuing these securities for the purpose of such transfer, as at the close of business of 15 July 2013. Such transfers were to be done no later than 30 September 2013.
ING Vysya Bank spurted 7.35% to Rs 576.10. According to a recent media report, ING Groep NV, the biggest Dutch financial-services company, is seeking a buyer for its 43% stake in ING Vysya Bank, as the prospects of limited purpose banking in India and tough competition in retail market make it rethink its local strategy. ING may exit the domestic banking business comprising retail, corporate and treasury, to focus on corporate banking, the report said.
However, ING Vysya Bank later clarified that ING never comments on market rumours and speculations.
State Bank of India (SBI) rose 0.72%. The bank last week said that it has repurchased a principal amount of $147 million of $1 billion 3.25% bonds due 2018 (the 2018 Bonds). The 2018 Bonds were issued by SBI on 18 April 2013 and are listed on the Singapore Exchange Securities Trading. The repurchase of the Bond took place between 26 August 2013 and 26 September 2013. The bank is in the process of cancelling the repurchased 2018 Bonds and the aggregate outstanding principal amount of the 2018 Bonds following such cancellation will be $853 million, SBI said in a statement.
Punjab National Bank advanced 1.58%. The bank early this week said that the bank has decided to provide interest at uniform rate of 9% on all NRE term deposits of tenure 3 years and above up to 10 years, considering recent relaxations permitted by the Reserve Bank of India (RBI). These changes shall be effective from 1 October 2013.
Bank of Baroda gained 5.31%. The bank has raised the rates of interest payable on term deposits of below Rs 1 crore and Rs 1 crore and above of some maturities with effect from 1 October 2013.
Bank of India jumped 5.22%. The state-run bank after market hours on Tuesday, 1 October 2013, said that the bank has completed the allotment of Rs 500-crore BASEL-III compliant unsecured Tier-II Bonds of 10 years at a coupon rate of 9.8% per annum on private placement basis. The state-run bank also clarified that the present issue is in addition to the earlier issue of Rs 1000 crore completed on 25 September 2013. Both the issues have been rated AAA by CRISIL, the bank said.
IT stocks gained on renewed buying. Wipro (up 2.7%) and TCS (up 4.08%) rose.
Infosys rose 0.84% after the company said during market hours that it has signed a four-year contract with Toyota Motor Europe for the provision of its pan-European application support. The four-year engagement will see Infosys deploy a managed service model, covering applications across a variety of Toyota's operational areas in Europe, including core automotive processes (such as supply chain, manufacturing, sales, after sales and customer service) and corporate functions (including human resources and finance). This will enable Toyota's IT employees to focus on business support and project development, in addition to supporting cost optimization, Infosys said in a statement.
Prior to this agreement, Infosys has been a key partner of Toyota Motor Europe for projects and transformation delivery services in various initiatives such as its Pan-European IT landscape transformation and connected car, the company added.
HCL technologies rose 3.02% to Rs 1,104 after hitting record high of Rs 1,115.50 in intraday trade today, 3 October 2013.
Mindtree jumped 4.04% to Rs 1,246.40 after the company after trading hours on Tuesday, 1 October 2013, announced that Paul Gottsegen will lead Marketing, Strategy and Alliances as Senior Vice-President and Chief Marketing and Strategy Officer of the company. The stock hit record high of Rs 1,256.85 in intraday trade. Gottsegen will guide the company's strategic planning, business-unit marketing, branding, sales excellence and alliances as MindTree continues to expand globally by delivering expertise-driven solutions with a deep understanding of both technology and industry-specific business models, the company said in a statement. Gottsegen held leadership positions in enterprise marketing at HP, Dell, Panasas and Compaq. He was most recently CMO of Infosys. He is known for building world-class marketing teams that transform how a company designs offerings and brings them to market, MindTree said.
Zensar Technologies rose 4.04% after the company said it has won significant large multi-year orders in its manufacturing sector in the United States. The company announced the new orders during trading hours today, 3 October 2013.
Deepanjan Banerjee, Head of the Manufacturing Vertical SBU at Zensar said, "Zensar's key growth driver traditionally has been the manufacturing vertical in the US. This growth trend continues with significant large contracts in this space. Key wins include multi-million dollar deals with a market leading innovator in semiconductors and a leading manufacturer of engineering solutions in data and power sectors. These wins further consolidate Zensar's leadership in the sector and boost both the custom and package applications businesses."
Nitin Parab, Chief Executive of Zensar's Enterprise Transformation business said, "The company's investment in shop floor to top floor solutions and our new focus on building extended enterprise solutions with mobility, social media and big data technologies is getting good customer traction and we expect to see continued success in manufacturing, retail and distribution in this financial year."
Sun Pharmaceutical Industries rose 2.12% after the company, through its subsidiary, announced the formation of a joint venture with Intrexon Corporation after market hours on Tuesday, 1 October 2013, to develop controllable gene-based therapies for the treatment of ocular diseases that cause partial or total blindness in millions of people worldwide. Initial targets are dry age-related macular degeneration (AMD), glaucoma and retinitis pigmentosa. The joint venture will leverage Sun Pharma's global capabilities and experience in developing and manufacturing complex dosage forms and specialty pharmaceuticals for niche therapy areas. Intrexon and Sun Pharma will share in both the financing of, and the revenues from, the joint venture.
Through an Exclusive Channel Collaboration (ECC), the joint venture will have access to Intrexon's full suite of proprietary synthetic biology technologies, including the RheoSwitch Therapeutic System (RTS) platform. RTS is a clinically validated method for controlling the location, concentration and timing of protein expression. RTS may address a long-standing limitation of current approaches by enabling patients to receive a targeted biologic therapy without having to endure a lifetime of injections. In addition to the initial targets, the companies intend to further expand the future pipeline of targeted ocular diseases to potentially include wet AMD, macular edema, non-infectious uveitis and diabetic retinopathy.
Lupin rose 1.16% after the company's US subsidiary, Lupin Pharmaceuticals Inc. (LPI), announced today that it has launched its generic Gatifloxacin Ophthalmic Solution, 0.5%. Lupin had earlier received final approval from the United States Food and Drugs Administration (US FDA) to market a generic version of Allergan Inc.'s Zymaxid Ophthalmic Solution, 0.5%. Lupin's Gatifloxacin Ophthalmic solution 0.5% is the generic equivalent of Zymaxid Ophthalmic Solution of Allergan and is indicated for the treatment of bacterial conjunctivitis. Zymaxid Ophthalmic Solution, 0.5%, had annual US sales of approximately $62.3 million (IMS MAT Jun 2013). Lupin was the first applicant to file an ANDA for Zymaxid Ophthalmic Solution and as such will be entitled to 180 days of marketing exclusivity.
Commenting on the approval, Nilesh Gupta, Managing Director, Lupin said, "Having received approval earlier, we are happy to now launch this product. The product is the first of the ophthalmic products that Lupin is bringing to the market and bears testimony to our continued commitment to serving our customers and patients by bringing high quality, affordable medicines."
Tata Motors rose 2.95%. The company's British luxury car unit Jaguar Land Rover (JLR) on Wednesday, 2 October 2013, said it has appointed John Edwards into the role of Managing Director of the newly created Individual Products Division with immediate effect. The new division will be responsible for designing and creating a portfolio of brand extending products, ranging from high value halo vehicles to lifestyle merchandise products. In his new role, John will be responsible for the company's 'Engineered To Order' division, accessories, licensing & merchandise activities, vehicle operations and heritage vehicles across both brands, JLR said in statement. On the new appointment, Jaguar Land Rover's Chief Executive, Dr Ralf Speth commented: "The introduction of the Individual Products Division is an exciting new opportunity for Jaguar Land Rover and is designed to sharpen our relentless focus on delivering outstanding products for our customers -- past, present and future. John brings a wealth of experience to the role which will be integral to supporting our future growth strategy."
Escorts shed 0.51%. The company said its total tractor sales rose 32.7% to 6,465 units in September 2013 over September 2012. The company announced the sales numbers during trading hours today, 3 October 2013.
Escorts Agri Machinery (EAM)'s domestic tractor sales rose 33.5% to 6,397 units in September 2013 over September 2012. Exports declined 12.8% to 68 units in September 2013 over September 2012.
Tyre shares were up across the board. Apollo Tyres (up 1.76%), JK Tyre & Industries (up 7.76%), MRF (up 5.12%), and CEAT (up 7.8%), gained.
Steel Strips Wheels spurted 9.98% after the company said its total wheel sales rose 9% to 10.05 lakh units in September 2013 over September 2012. The company announced the sales numbers during trading hours today, 3 October 2013. Steel Strips Wheels (SSWL) said that the September 2013 sales are its highest ever monthly sale so far.
Passenger Car/MUV wheels sales rose 8% to 4.18 lakh units in September 2013 over August 2013. Sales declined 14% to 4.18 lakh units in September 2013 over September 2012 due to base effect of car segment sale which will improve going forward with new business starts and ramp of existing businesses, the company said. The car segment growth is also expected to improve further with the company's portfolio doing exceedingly good and getting very high customer acceptance, it added. SSWL said it enjoys 100% supply to Honda amaze, Hyundai i10 Grande and Renault Duster. Few new passenger car businesses will start by December 2013 where SSWL enjoys 100% supply which will further boost volumes, the company said in a statement.
The tractor segment sales grew strong with a growth of 43% and the trend is expected to continue and improve the profitability going ahead, SSWL said. On the back of a very good monsoon this segment will continue to drive numbers in second half of FY 2014, it added.
Two and three wheeler segment sales grew 58% in line with the company's guidance and the robust pace will continue with few more new business starts and ramp up of existing models, SSWL said in a statement.
Exports surged 107% to 1.49 lakh units in September 2013 over September 2012. Going forward the company looks to further add volumes in this segment based on start of new businesses that the company had bagged in the past, it said.
With the September sales, the second quarter (July-September 2013) sales stood at 28.54 lakh units as against 25.27 lakh units for the same period last year, SSWL said. The second quarter numbers beat the company's guidance of 27.50 lakh provided in the month of July by a healthy margin, SSWL said.
Commercial vehicle (CV) segment is limping in slow lane and the company's new developments in this segment will start delivering in the third quarter, SSWL said. This along with expected pick up in CV segment in balance months of this fiscal will prove to be a very valuable kicker in terms of sales and also EBITA accretion, the company said in a statement.
The capacity utilization has improved considerably over last 6 months and currently the company's Dappar plant is at 90% utilization and Chennai is operating at 60% utilization, SSWL said. Chennai plant is expected to move further towards 70-75% towards end FY 2014 with support from exports as well as domestic business, the company said.
SSWL has given a forward guidance of 30 lakh wheel sales for Q3 FY 2014. SSWL said that the company is setting a stiff target and expects to achieve it on the back of growth across all segments.
Shares of two-wheeler makers and consumer durables makers rose.
Among two-wheeler makers, Bajaj Auto jumped after the company reported better than expected September sales. The stock jumped 5.36%. The company said before market hours today, 3 October 2013, that its total sales rose 2% to 3.67 lakh vehicles in September 2013 over September 2012. Motorcycle sales rose 3% to 3.23 lakh units in September 2013 over September 2012. Commercial vehicles sales fell 2% to 43,936 units in September 2013 over September 2012. Exports rose 10% to 1.46 lakh units in September 2013 over September 2012.
Hero MotoCorp rose 1.37%.
Consumer durables shares gained. Whirlpool of India (up 4.31%), VIP Industries (up 1.58%), TTK Prestige (up 2.59%), Titan Industries (up 2.02%) gained.
Indian banks will get additional capital to provide loans at lower interest rates for purchases of two-wheelers and other consumer durables, the finance ministry said in a statement on Thursday, 3 October 2013. The move is aimed at stimulating demand in Asia's third-largest economy that is struggling to recover from the worst slowdown in a decade. The decision was taken at meeting between Finance Minister P. Chidambaram and new RBI chief Raghuram Rajan, the statement added.
Capital goods pivotals gained for the second day in a row. Bhel (up 1.27%) and L&T (up 3.62%), rose.
Cement stocks rose on reports that cement prices rose sharply by Rs 20 to Rs 50 per bag in various parts of the country during the last 10 days of September 2013, after a steady downtrend/subdued movement from August 2013 till the first half of September 2013. Ambuja Cement (up 6.27%), ACC (up 3.82%), and UltraTech Cement (up 4.63%) surged.
Realty stocks gained for the second day in a row. DLF (up 1.06%), Indiabulls Real Estate (up 1.25%), D B Realty (up 2.81%), Sobha Developers (up 1.55%), HDIL (up 6.42%), and Unitech (up 3.8%) gained.
Shares of cellular services provider Idea Cellular rose 1.64% to Rs 176.35 after hitting a record high of Rs 178.35 in intraday today, 3 October 2013.
Tata Communications extended Tuesday's gains triggered by an announcement early this week that Vodacom and the shareholders of Neotel have entered into exclusive discussions regarding a potential acquisition of 100% of the shares of Neotel by Vodacom SA. The stock was up 4.89% at Rs 212.40. The stock had jumped 7.65% to settle at Rs 202.50 on Tuesday, 1 October 2013. Tata Communications has a strategic investment in Neotel.
Vodacom is an African mobile communications company providing voice, messaging, data and converged services to around 50 million active customers, Vodacom is majority owned by Vodafone, one of the world's largest mobile communications companies by revenue. Vodacom is listed on the JSE and its head office is in Johannesburg, South Africa.
Neotel is South Africa's first converged communications network operator. It provides a range of value-added voice, internet and data services for businesses, wholesale network operators and providers and retail customers using its IP Next Generation Network, powered by Neotel's high-performance fibre optic backbone. Neotel connects the major centres in South Africa to each other and to the world, directly linking its infrastructure into Tata Communications' global Tier 1 network.
Separately, Tata Communications announced on Wednesday, 2 October 2013, that it launched its mobile messaging exchange service. The exchange will enable over-the-top (OTT) providers and SMS aggregators to connect to a large community of MNOs globally, while allowing MNOs to monetise the SMS traffic with an added layer of security. This service provides a mutually favourable and profitable solution for all the stakeholders in the value chain, the company said in a statement.
Zee Entertainment Enterprises surged 6.32%. The company said today that the Audit Committee of the board of directors of the company has approved appointment of Mr. Mihir Modi as Chief Financial Officer of the company, in place of Mr. Hitesh Vakil. Mr. Mihir Modi will take charge as Chief Financial Officer of the company with effect from 10 October 2013.
Advanta was locked at 10% upper circuit at Rs 119.50 on BSE after the company after trading hours on Tuesday, 1 October 2013, announced the appointment of Mr. Claudio Torres as Chief Executive Officer of the company with immediate effect. Claudio, an MBA from Tulane University, USA, has rich and varied experience of 23 years in the international agricultural inputs/seeds industry, Advanta said in a statement. Prior to joining Advanta, Claudio was working with Monsanto, managing seed businesses in various leadership roles in several geographies, Advanta said.
European stocks reversed initial gains on Thursday, 3 October 2013, as a shutdown of the US government entered a third day. Key benchmark indices in France and Germany were off 0.1% to 0.3%. In UK, the FTSE 100 index was up 0.19%.
Euro-area services output expanded more than initially estimated in September, as the 17-nation currency bloc's economic recovery gained momentum. An index based on a survey of purchasing managers in the services industry rose to 52.2, exceeding a Sept. 23 estimate of 52.1 and up from 50.7 in August, London-based Markit Economics said today. The gauge has been above 50, indicating growth, for two months.
The European Central Bank kept its benchmark interest rate unchanged at a record low on Wednesday, 2 October 2013, as the euro area recovers from its longest-ever recession. The Governing Council meeting in Paris on 2 October 2013 left the main refinancing rate at 0.5% for a fifth month after cutting it by a quarter point in May. The central bank was "particularly attentive" to any moves in market rates which could threaten economic recovery or push inflation too low, Mario Draghi told a news conference.
In Italy, Silvio Berlusconi said he would back the government of Prime Minister Enrico Letta in a confidence vote on Wednesday, a surprise move that has allowed the coalition government to avoid a collapse.
Most Asian shares turned higher on Thursday, 3 October 2013, shaking off a weak start following an encouraging reading on non-manufacturing activity in China. Key benchmark indices in Hong Kong, Taiwan and Indonesia rose by 0.71% to 1.73%. Key benchmark indices in Japan and Singapore fell 0.09% to 0.25%. Markets in South Korea were closed for the National Foundation Day holiday. Markets in mainland China are closed till 7 October 2013 for National Day holidays.
China's official non-manufacturing Purchasing Managers' Index rose to a six-month high of 55.4 in September from 53.9 in August, adding to a growing roster of evidence that China's economy has turned a corner in recent months.
The Philippines won a rating upgrade from Moody's Investors Service, completing the nation's ascent to investment rank as President Benigno Aquino leads a growth resurgence that's outpacing the rest of Southeast Asia. The rating on the nation's government debt was raised one level to Baa3, Moody's said in a statement today. The outlook on the rating is positive. The upgrade puts the Philippines on par with Turkey and Spain.
Trading in US index futures indicated that the Dow could fall 33 points at the opening bell on Thursday, 3 October 2013. US stocks fell on Wednesday as investors watched for progress on ending an impasse over federal spending that shut down the government a second day. The US government has been in partial shutdown for two days after lawmakers failed to agree on a federal budget.
A meeting between President Barack Obama and congressional leaders ended Wednesday night with no deal to re-open the US government. House Speaker John Boehner told reporters that Obama repeated he wouldn't negotiate about passing a funding bill. With the Senate gaveled out for the day, the stalemate continued and meant the government shutdown would continue for a third day on Thursday.
A report showed companies added fewer workers than projected in September, indicating the job market is struggling to gain momentum. The 166,000 increase in employment followed a revised 159,000 rise in August that was smaller than initially estimated, according to the ADP Research Institute in Roseland, New Jersey.
Meanwhile, the US is creeping up against its debt limit. Treasury Secretary Jack Lew on Tuesday night reiterated that the government will lose the ability to borrow on Oct. 17.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
Moody's Investors Service lowered its outlook on Brazil's sovereign rating to stable from positive, citing deteriorating debt and investment ratios and evidence the economy is going through a low-growth period. "Even though there are signs that the Brazilian economy may be starting to recover, Moody's view is that, if and when the upturn materializes, it is unlikely that it will be strong enough to restore a positive trend in Brazil credit metrics," Moody's said in a statement dated 2 October 2013. Moody's affirmed Brazil's Baa2 government bond rating.
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