R V Kanoria, the president of the Federation of Indian Chambers of Commerce and Industry (FICCI), has indicated that the Finance Minister might be refrained by taking any drastic bolder decisions during the much awaited Union Budget. The current economic position of India, is more likely to cause some amount of unease to the Finance minister while preparing the Budget. During a lecture delivered at the Kerala Chamber of Commerce and Industry, FICCI president is reported to be saying that “We have a current account deficit, and the negative trade balance is not sufficiently compensated through inflow of capital from FIIs or our invisible earnings which constitutes remittances from the services sector. Hence, India has got into a high fiscal and current account deficit situation, which leaves the ministry with little scope to take bold decisions.” The report comes in the wake of fall of GDP numbers to 2 years low.
The rupee has opened lower on Thursday, in the wake of a weaker euro. Expectations are also on the anticipated dollar demand from domestic oil refiners. The much awaited ONGC share sale by the Govt. of India, is also seen to support the rupee, attracting the foreign funds.
Back home, the markets on Thursday have opened in the red, with weak signals from the global markets as well. The Sensex has opened at 17,700. The index is now down 58 points at 17,690. Nifty is down 53 points at 5,332, down by 1%.
Hindalco, SBI, ICICI Bank are down. BHEL has slipped 3.5%. Metal stocks have opened soft. Reliance has also capped the indices from moving forward. However, ONGC, Sun Pharma, HUL and Siemens are in the green.