Stock market came under heavy selling pressure in the last hour of the session on Friday after global rating agency Moody's lowered India's outlook to 'negative' from stable
Penalising banks for past actions is not the best way to make the financial markets work better
Economists say that though Moody's cut is not really justified at this point, the move is a grim reminder of the state of the economy and the need to accept that all is not well
The central bank has so far this year cut interest rate by 110 basis points but lenders have transmitted only a part of it to borrowers in the form of a lower cost of taking loans
The losses to asset-backed securities (ABS) will also rise as the economy slows, said Moody's
For 2020 calendar year, it reduced the estimate by a similar measure to 6.7 per cent
Of 1,716 defaults for non-financial companies, including utilities, almost 1,600 happened in advanced economies