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Data● Neutral for Indian equities
Centre's fiscal deficit touches 41.9% of full-year target at Aug-end: CGA
The brief
- Fiscal deficit reached ₹7.1 trillion in April-August, 41.9% of the full-year target
- Fiscal slippage could affect government borrowing and bond yields, watched by Indian banks and investors
- Bond supply may outweigh demand, push yields higher
- RBI may shift govt borrowing towards shorter tenures in H2
- Govt keeps restraint, H2 borrowing pegged at Rs 7.86 lakh crore
- Lower borrowing plan signals tax buoyancy, offers relief for bond yields
- Centre cuts FY27 gross borrowing estimate to ₹15.99 lakh crore; H2 bond sales set at ₹7.86 trillion