A hung parliament or a government incapable of pushing through reforms after next year's general elections will definitely drag India's sovereign rating under pressure, global ratings agency Standard & Poor's (S&P) said on Wednesday.

General elections in India are due by May 2014. Analysts are of the view that the BJP, the main opposition party that has performed better than the ruling Congress in the recent state elections, will likely not be able to maintain its winning streak by general elections, and regional parties will likely garner more votes, which will result in a hung Parliament.

Terry Chan, credit analyst at S&P, said, "If it is a hung parliament or if the government is unable to effect reforms, definitely by implication the rating will come under pressure."

The analyst's harsh comment surfaced just a few days after the recent elections in four states saw the BJP emerging as the biggest party.

Currently, S&P has a BBB- sovereign credit rating for India, with a negative outlook. It may be noted here that BBB- is the lowest investment grade. Last month, the ratings agency had warned that the negative outlook was an indication that it might cut the rating to speculative grade in case the new government was not capable of boosting the country's economic growth.

Reacting negatively to S&P's observation, the Sensex shed nearly 84 points to close at 21171.41 on Wednesday.