Sensex has recovered from the day’s lows, it is up 283 points at 25734, the Nifty is up 94 points at 7861.
The finance minister promised to meet a fiscal deficit target of 4.1 percent in FY15 and retained the fiscal deficit target for FY17 at 3 percent.
The government has increased FDI in defence to 49 percent to increase local indigenous production and save precious foreign exchange. These measures will reduce current account deficit in the long run. This should lead to the currency remaining relatively stable in the long run as current account deficit will be at manageable levels. Overall, the government has given a roadmap which it intends to work on over the next five years and increase the supply of goods and services in the economy,” said Murthy Nagarahan, head-fixed income, Quantam Asset Management.