Nomura says trade deficit 'worryingly high'

An employee arranges Indian currency notes at a cash counter inside a bank in Agartala, Tripura, June 3, 2010.

Reuters Market Eye - Nomura says India's external sector remains in a "precarious state" after data earlier in the day showed a trade deficit of $19.3 billion in November, underpinning the vulnerability of the rupee.

The trade deficit is narrower than an all-time high of $21 billion in October, but remains "worryingly high", according to Nomura.

A high trade deficit despite a sharp domestic slowdown reflects weak global demand, export bans, as well as rising commodity import prices, Nomura says.