Home / Markets / News / Interim Budget 2019: Why BofA-ML expert expects fiscal surprise for markets

Interim Budget 2019: Why BofA-ML expert expects fiscal surprise for markets

The concerns about the health of India's finances have coincided with a rebound in prices of oil -- India's top import -- and below-average revenue from goods and services tax and asset sales

Premium

Subhadip Sircar and Anto Antony | Bloomberg

Last Updated : Jan 30 2019 | 1:19 PM IST

India’s sovereign bonds market has been jittery of late, with investors bracing for the government to announce populists measures in the federal budget due this Friday. Bank of America Merrill Lynch isn’t perturbed.

Bonds are poised to rally as fears about fiscal slippage are overdone and the central bank will likely start easing policy as early as next week, said Jayesh Mehta, who in August correctly predicted the end to the selloff in local bonds.

“Markets will be positively surprised on the fiscal front,” Mehta, the country treasurer at the bank said in an interview in Mumbai.

The yield on

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in