Monsoon rainfall in India, the main source of irrigation for the nation’s 263 million farmers, will be below normal this year as El Nino emerges, weakening prospects for crops from rice to soybeans and sugar and potentially boosting inflation.
India’s 10-year bond yield fell to the lowest level in almost a week after the government sought to reduce the fiscal deficit for next year and said the current year’s gap will be within the official target.
Indian Prime Minister Manmohan Singh , who’s halfway to his fiscal-year target for share sales with 35 days to go, may have to set a more ambitious goal for the next 12 months even as investors shun the country’s stocks.
Indian Prime Minister Manmohan Singh’s economic advisory body cut its growth forecast and signaled interest rates wouldn’t fall until the rupee stabilizes and inflation eases. Bonds, the currency and stocks fell.