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:
  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Tobacco Control

Tobacco Control

India moves toward ban on loose cigarettes to deter smoking   Full Article 

Modi at SAARC

Modi at SAARC

Modi gives Buddha a miss as SAARC leaders flock to Nepal.  Full Article 

Reuters Insight

Reuters Insight

In Modi’s India, green shoots of reform from Rajasthan.  Full Article 

Investing in ETFs

Investing in ETFs

U.S. investors elevate India over other emerging markets  Full Article 

J&K Elections

J&K Elections

Kashmiris turn out to vote as BJP bids for power  Full Article 

Trade Talks

Trade Talks

India, U.S. hold first trade dialogue in four years  Full Article 

Modi's Wife

Modi's Wife

Modi's estranged wife unhappy over round-the-clock security  Full Article 

Global Economy

Global Economy

OECD sees gradual world recovery, urges ECB to do more  Full Article 

Reuters India Mobile

Reuters India Mobile

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