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10-yr bonds fall as Budget 2018 sets larger deficit target of 3.3% for FY19

Shares initially sold off after Jaitley announced a new capital gains tax on long-term equity investments

Reuters  |  Mumbai 

Indian bonds slumped on Thursday after the government set a slightly wider-than-expected budget deficit target for the next financial year, while shares clawed back earlier bigger losses as investors welcomed spending in key areas of the slowing economy. Finance Minister Arun Jaitley set the government's fiscal deficit at 3.3 per cent of gross domestic product for the 2018/19 financial year, higher than market expectations of 3.2 per cent. But analysts said the falls in bonds may not be sustained in the near term given the widening in the deficit was not as large as some ...

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First Published: Thu, February 01 2018. 18:07 IST
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