'Current Account Deficit will be contained at 60 billion dollars': Chidambaram

Finance Minister P Chidambaram on Thursday said that the Current Account Deficit (CAD) is under control, and will be contained at 60 billion dollars.

"Current Account Deficit shall be contained at 60 billion dollars. It is well under control, and I am confident we will be able to adhere to red line for fiscal deficit. Earlier current account deficit target was 70 billion dollars," he told media here today.

"There has been a sharp pick up in exports in last three months. Trade balance will be well contained, and it will reflect on current account deficit," he added.

He further said that inflation and reviving investments are key challenges for the government.

"We are confident that the steps taken by the Reserve Bank of India (RBI) will bring moderation in inflation," he said.

"The rupee has by and large stabilised, though in my personal opinion it is still trading above its appropriate level. The stability in currency markets will give comfort to take more measures,' he added.

Chidambaram also cautioned the investors against exuberance over market rally.

"Investor confidence in India remains intact. I would caution investors against excessive exuberance over market rally," he said.

He also said that the Foreign Direct Investment (FDI) inflows have been encouraging.

"Looking forward to more FDI inflows in pharmaceutical sector, single brand retail, multi brand retail and telecom sectors," he added.

The BSE Sensex hit an all-time high today breaking its earlier record of 21,206, which was set in January 2008.

The Sensex set a new all-time high record of 21,293.88, up nearly 130 points. The Nifty gained 8 points to close at 6,307.