Analysts peg net borrowing below 5 trillion rupees

Thu Feb 21, 2013 12:51pm IST

A Kashmiri shopkeeper displays a garland made of Indian currency notes at a market in Srinagar May 20, 2008. REUTERS/Fayaz Kabli/Files

A Kashmiri shopkeeper displays a garland made of Indian currency notes at a market in Srinagar May 20, 2008.

Credit: Reuters/Fayaz Kabli/Files

Related Topics

Reuters Market Eye - A growing chorus of analysts expect India to keep net borrowing below 5 trillion rupees. Analysts have put faith in Finance Minister P. Chidambaram's fiscal discipline, with budget projections factoring in a 4.8 percent deficit, similar to the official forecast.

That may trigger a rally in bonds in 2013, with yields having potential to fall to 7.25 pct.

Goldman Sachs estimates net borrowing at 4.91 trillion rupees with gross at 5.86 trillion rupees.

RBI may need to carry out 1 trillion rupees of OMOs in FY14 to meet government demand, anchor bond yields, bank says. It has a target for average 10-year bond yield for FY14 in 7.25-7.50 percent range.

Credit Suisse has an estimate of 4.7 trillion rupees for net borrowing, with the possibility of an upside if the government decides on buybacks.

Standard Chartered estimates net borrowing to be on the lower side of around 4.2-4.4 trillion rupees as it estimates 600 billion rupees of the current cash surplus going into funding the FY14 deficit.

(Reporting by Subhadip Sircar)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

GROUP OF 20

REUTERS SHOWCASE

Modi Speaks

Modi Speaks

PM Modi says al Qaeda will fail in India - CNN.  Full Article 

Alibaba Listing

Alibaba Listing

Alibaba surges on massive demand in trading debut  Full Article 

Importing Rice

Importing Rice

Top rice exporter India importing over 100,000 T on temporary supply squeeze.  Full Article 

GSK Fined

GSK Fined

China hands drugmaker GSK record $489 mln fine, sentences executives.  Full Article 

HMT in Demand

HMT in Demand

Fans rush to HMT as watchmaker marks time.  Full Article 

Apple Not Cool?

Apple Not Cool?

Some consumers say Apple is losing its "cool" factor  Full Article 

Asian Games 2014

Asian Games 2014

Full coverage of the 17th Asian Games as Incheon.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage