Finance Minister Arun Jaitley has the tough task of balancing the need to boost spending and maintaining fiscal discipline when he presents the annual budget on Feb. 28. Former Infosys CFO V. Balakrishnan says the government’s main priority should be to revive the economy by loosening up its purse strings and the country could live with a “slightly higher fiscal deficit.”
The BSE Sensex surged to a fourth straight life high on Wednesday, breaching the psychologically important 28,000 mark as banking shares continued their rally on hopes of a rate cut by the Reserve Bank of India (RBI).
By Sankalp Phartiyal and Ankush Arora
The benchmark BSE Sensex fell in three of five sessions this week, as higher crude prices hurt sentiment and the cabinet’s decision to delay a hike in gas prices disappointed investors. Caution also prevailed ahead of the June derivatives’ expiry on Thursday and fears of more violence in Iraq prompted investors to pare positions.
The BSE Sensex closed in the red twice this week, eventually ending with losses of 0.5 percent. The week began with the benchmark index touching an all-time high of 22,023.98 points in trade on Monday, aided by strong foreign buying.
India’s information technology services businesses will continue to benefit from improving client demand from developed countries in 2014, pushing stocks higher after a stellar performance last year, analysts told India Insight.
By Ankush Arora and Aditya Kalra
The BSE Sensex gained 1.5 percent this week, its first weekly gain in 2014, as easing headline inflation data raised hopes the Reserve Bank of India would keep interest rates unchanged at its Jan. 28 meet.
The BSE Sensex rose 3 percent during the week, ending in the green for four of the five trading sessions. Improved guidance from Infosys, hopes of a U.S. deal to avoid a default on its debt and the RBI’s decision to cut a key overnight interest rate helped sentiment.
By Ankush Arora and Sankalp Phartiyal
The BSE Sensex rose 2.7 percent in the week ending September 20, as foreign inflows and the U.S. Federal Reserve’s surprise decision to continue with its bond-buying programme boosted market sentiment.