Narendra Modi, who is poised to win India’s elections, has vowed to spend billions on high-speed rail networks, ports and health care. Accelerating sales of state companies may help him foot the bill.
India’s 10-year bonds dropped, with the yield climbing the most since September, on concern demand for existing securities will fall as the government starts its annual borrowing program this week.
Nomura Holdings Inc. cut its growth forecast for India and predicted the central bank may raise interest rates this month for the last time in 2010.
India’s central bank unexpectedly raised its key interest rate, signaling it’s ready to implement the most sweeping changes in its 78-year history to fight the fastest consumer-price gains in Asia.
India’s weakest economic growth since 2009 escalates pressure on the government to increase the smallest foreign-exchange reserves among BRIC nations, as policy makers struggle to contain a sliding rupee.
Indian interest rates will remain elevated as long as surging inflation imperils economic growth, a deputy governor of the country’s central bank said.
India increased efforts to stem the rupee’s plunge and stop capital outflows that are pushing the economy toward its biggest crisis in more than two decades.
Indian bonds outperformed those of the largest emerging nations in the past month, with the biggest decline in yields relative to Treasuries among BRIC nations, on signs inflation is slowing.
The failure of India’s main opposition to win a majority in state elections in the capital highlights the risk the world’s largest democracy will fail to elect a stable national government next year.
"These are ambitious targets and funding, therefore, is an issue."
- Sonal Varma on Apr 09, 2014