India borrowing target not cause for disappointment: StanChart

Fri Mar 1, 2013 12:09pm IST

Indian currency of different denominations are seen in this picture illustration taken in Mumbai April 30, 2012. REUTERS/Vivek Prakash/Files

Indian currency of different denominations are seen in this picture illustration taken in Mumbai April 30, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

Reuters Market Eye - Standard Chartered says India's debt investors "need not be disappointed" with the government's 2013/14 gross borrowing target of 6.29 trillion rupees announced on Thursday, which had sent bonds to their worst day in seven months in the previous session.

After adjusting for a buyback of 500 billion rupees, the gross borrowing is at 5.79 trillion rupees, only 4 percent higher than in the current fiscal year ending in March, StanChart says.

The bank adds India had not budgeted for any cash drawdown in 2013/14, despite a cash surplus estimated at 1 trillion rupees, which the government may have retained as a cushion should revenues fall below its estimates.

"We believe such a large cash surplus has the potential to surprise the markets positively," StanChart says.

Easing inflation and rate cut hopes should be positive for bonds, the bank adds, recommending investors hold 10-year bonds.

(Reporting by Subhadip Sircar)

FILED UNDER:

REUTERS EXCLUSIVE

Reuters Showcase

Inflation Targeting

Inflation Targeting

India sets inflation target in monetary policy overhaul.  Full Article 

Rich List

Rich List

Bill Gates tops Forbes rich list, Michael Jordan joins.  Full Article 

Tough Task

Tough Task

India needs sustained GDP growth of 9-10 percent - Jaitley.  Full Article 

Budget 2015

Budget 2015

Budget announcements and reactions from the industry  Full Coverage 

PMI Data

PMI Data

Factory activity growth slows to five-month low in Feb  Full Article 

Coal Auction

Coal Auction

India examines coal mine bids amid reports of discrepancies  Full Article 

Ola Buys Rival

Ola Buys Rival

Ola buys rival TaxiForSure for $200 million  Full Article 

Environment Watch

Environment Watch

Deforestation could shift monsoons, leaving India high and dry.  Full Article 

Reuters India Mobile

Reuters India Mobile

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