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.
Trending On Reuters
In late 2014, the knives were out for RBI governor Raghuram Rajan. Since then, Modi and Rajan have developed a close working rapport, government officials and people close to the governor say, and that could be crucial to the $2 trillion economy. Full Article