Confidence level in Indian economy continues to rise: S&P

The confidence level in India continues to rise amid indications of slower growth ahead for the Asia-Pacific region, said a report by global rating firm Standard & Poor's.

Weaker global trade and a Chinese economy still weighed down by the property sector suggest slower growth ahead for the Asia-Pacific region, said the report titled 'Asia-Pacific Could Be Entering A Steady State Of Slower Growth'.

However, it added the Asia-Pacific growth story is not all gloom and doom though.

"In India, confidence continues to rise despite concerns about investment quality. Our forecasts of 7.4 per cent growth for 2015 and 8.2 per cent for 2016 are the highest in the region," it said.

Also, the pace of activity is picking up in Japan, and agency said it has raised its forecasts to 0.9 per cent for 2015 and 1.3 per cent for 2016.

"China's property market correction continues to be the region's main risk," said Paul Gruenwald, S&P's Asia-Pacific chief economist. "But some signs of stabilisation are appearing following an increasingly forceful policy response."

Growth forecasts for China in 2015 and 2016 remain unchanged at 6.8 per cent and 6.6 per cent, respectively, with the risks still slanted toward the downside, he said.

The report also said the incipient recovery in the US, particularly for durable goods consumption, has yet to lead to a sustained export bounce in Asia-Pacific.

Gruenwald noted that "the large drop in oil prices has paid only limited growth dividends" for the region, despite its heavy external energy dependence.

The BSE index Sensex on Wednesday plunged 483.97 points, its biggest single-day fall in over a month, to end the day below the 28,000 mark at 27,687 on heavy selling.

The rupee closed at 63.60 against dollar, down 14 paise. Gold too lost some of its sheen.

Brokers attributed the sharp fall in financial markets to the sell-off in Asian bourses after a Chinese stock market rout rattled investors as the deadline looms for Greece to seal a deal with its international creditors.