The Indian Finance Minister, Yashwant Sinha, has expressed disappointment with the latest downgrading of India's international credit rating.

Mr Sinha maintained that the move, by a United States based agency Standard and Poor, was unjustified.

Market reaction has been muted but some brokers say it will add to the pessimism of foreign institutional investors.

However, reports from Delhi say there has been some movement in long-running efforts to open up the government controlled insurance sector -- seen by foreign investors as a watershed of economic liberalisation policy .

A ministerial panel is reported to have approved proposals for foreign equity participation.