Indian shares slump; food bill raises fiscal deficit concerns
MUMBAI Aug 27 (Reuters) - India's NSE index fell as much as 2 percent as blue chip shares including HDFC Bank slumped on concerns that the passage of food security bill will weigh on the country's fiscal and current account deficits, raising fears of a sovereign rating downgrade.
The lower house of parliament approved a plan worth nearly $20 billion on Monday to provide cheap grain to the poor.
HDFC Bank Ltd fell 5.5 percent, while ITC Ltd lost 1.3 percent.
The broader NSE index fell 2 percent, while the benchmark BSE index slumped 1.8 percent. (Reporting by Abhishek Vishnoi; Editing by Subhranshu Sahu)
- Tweet this
- Share this
- Digg this
Trending On Reuters
Anticipating data out on Friday will show weakening economic growth, the finance ministry will argue for an interest rate cut, but bankers and company executives say the key to recovery lies in how fast Prime Minister Narendra Modi acts on reforms. Full Article
Disputes over land for industry on the rise in India, angering locals - charities Full Article