• Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Realasset Realasset
moneycontrol.com

Home » News » Markets » Market Cues

Feb 24, 2013, 12.23 AM | Source: Reuters

Markets weekahead: Stakes high as India gears up for Budget

India's bond and forex markets are gearing up for one of the key annual domestic events: The Budget for the next fiscal year starting in April, to be announced on February 28.

Like this story, share it with millions of investors on M3

Markets weekahead: Stakes high as India gears up for Budget

India's bond and forex markets are gearing up for one of the key annual domestic events: The Budget for the next fiscal year starting in April, to be announced on February 28.

Post Your Comments

Share Cancel

Markets weekahead: Stakes high as India gears up for Budget
Market Eye Weekahead - India's bond and forex markets are gearing up for one of the key annual domestic events: the Budget for the next fiscal year starting in April, to be announced on February 28.

Investors will closely scrutinise the Budget to see whether India delivers a credible plan that can contain the fiscal deficit at a targeted 4.8 percent of GDP for 2013/14.

Much is at stake in the budget, given the threat of India losing its investment-grade rating from Fitch and Standard & Poor's.

Whether the government can avoid its usual habit of ramping up spending ahead of general elections, due by 2014, will be particularly key.Bond investors will check whether India can hold gross market borrowing at Rs 570,000 to Rs 600,000 crore, which will be a key indication of the government's fiscal discipline.

Also read: Five point something: Chidambaram's dilemma

The 10-year benchmark bond yield is expected to hold in a 7.75 to 7.83 percent range until the budget, with the yield likely to drop below 7.75 percent if the gross borrowing number is lower than Rs 570,000 crore.

Forex traders would look for cues on how the government plans to revive investment in key sectors which will be crucial in bringing in dollar inflows and boosting the rupee.

The rupee is seen holding in a 54.10 to 54.80 per dollar range until the budget.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Markets weekahead: Stakes high as India gears up for Budget

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login