In macro news, core sector growth for the month of November has slowed and fiscal deficit has come in higher than expected. Fiscal deficit for current FY has already touched 94% of the budgeted number, with 4 more months to be accounted for.
Going forward market will focus not just on whether govt manages to stick to 4.8% GFD or not but also on the quality and sustainability of the expenditure compression.
Over the remainder of the week, economic docket will slowly become heavy especially from US and European economies.
Volatility has collapsed in Indian rupee, US dollar trade to around 0.4-0.8% per day, close to levels seen during the Q1 of 2013.
Anindya Banerjee, Senior Manager, Broking-Currency Derivatives, Kotak Securities
NOTE: The views expressed are those of the author