'We don’t want Indian economy to be controlled by': Top finmin official on hot money
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India's $1 trillion bond market is expected to receive about $40 billion of inflows on inclusion into JPMorgan Chase & Co.’s emerging index. Finance Secretary TV Somanathan stated that the government will take action to prevent hot money from coming in and to maintain control over the Indian economy. Inflows have already started, with over $6 billion invested in index-eligible debt since the inclusion announcement in September. HSBC Asset Management predicts that India’s bonds will receive $100 billion of inflows in the coming years. Somanathan also criticized rating agencies for not upgrading India's rating despite plans to reduce the budget deficit to 5.1% of GDP.
#IndiaEconomy #HotMoney #BondMarket #Inflows #FinanceSecretary #RatingAgencies #BudgetDeficit
Interim Budget, Fed outcome among key factors that will guide Dalal Street on D-Day
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Finance Minister Nirmala Sitharaman will present the interim budget on Thursday, February 1, which will mark the final budget of Modi Government 2.0 ahead of the general elections. The US Federal Reserve decided to keep interest rates steady on Wednesday. The domestic market will closely follow the interim budget, especially any proposals related to LTCG, disinvestment plans, capex in infra sector and fiscal discipline. Two key economic indicators were released ahead of the Budget. January witnessed a noteworthy upswing in GST collections, reaching a second all-time high of over Rs 1.72-lakh crore. The fiscal deficit hit 55 per cent of the budget estimate for the April-December period. But the output growth of eight core industries plummeted in December 2023, reaching a 14-month low of 3.8 per cent. Weekly Nifty futures and options contracts will expire today, adding to the likely volatility in the market. Asian shares fell, following a late decline on Wall Street.
#InterimBudget #FedOutcome #DalalStreet