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BUZZ-Nomura sees India's 2017/18 fiscal deficit widening to 3.5 pct
October 3, 2017 / 9:45 AM / 2 months ago

BUZZ-Nomura sees India's 2017/18 fiscal deficit widening to 3.5 pct

** Nomura says it sees 55 pct probability of India’s 2017/18 fiscal deficit target widening to 3.5 pct of GDP from current 3.2 pct

** This comes after India said on Friday fiscal deficit reached 96.1 pct of budgeted FY target, though number fluctuates

** Nomura says it expects revenue shortfall of 0.2 pct-0.3 pct of GDP

** Says it believes govt will use extra spending on bank recapitalisation of around 250 bln rupees ($3.81 billion), plug revenue shortfall rather than spending on populist measures

** Adds medium-term prospect for rupee would improve if fiscal deficit target widens because of partial bank recapitalisation

** On rates, Nomura is neutral on 7-15 yr bonds and has buy-on-dip approach on debt of 5 yr or lesser ($1 = 65.5450 Indian rupees)

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