India debt/FX to track global mkts; GDP data key

Reuters Posted online: Friday, Feb 21, 2014 at 0000 hrs
Indian debt and foreign exchange markets will closely mirror moves in the global markets next week in the absence of any key domestic triggers.

GDP data due to be released post-market hours on Friday will be crucial for direction. In the interim budget on Monday, the finance minister said India's economy will recover to at least 5.2 percent growth in the second half of 2013/14 from 4.6 percent in the first half.

Traders are hoping the central bank announces some measures like open market operations as liquidity is likely to tighten due to seasonal factors like corporate tax payments in March.

The benchmark 10-year paper is seen holding in a 8.75 to 8.85 percent range next week.

The partially convertible rupee is expected move in a 61.80 to 62.50 per dollar range, dealers said.