Axis Bank Neeraj Gambhir on Indian Budget

The video discusses the market's reaction to India's fiscal deficit, highlighting the bond market's response to the government's budget announcement. It explores the Reserve Bank of India's (RBI) monetary policy and normalization plans, including potential interest rate hikes. The challenges of international bond inclusion and the impact of global factors like Fed tightening and oil prices on the rupee are examined. The potential for green bond issuance in India and the current state of foreign demand for Indian bonds are also covered.

What was the market's expectation for the fiscal deficit percentage before the government's announcement?

• 5.0 to 5.5%

• 5.8 to 6.0%

• 6.4 to 6.6%

• 6.8 to 7.0%

What is the anticipated action by the RBI to start the normalization process?

• Introduce new monetary policies

• Narrow the corridor between repo and reverse repo rates

• Increase the repo rate immediately

• Decrease the reverse repo rate

What is the expected rate hike by the RBI over the next fiscal year?

• 100 basis points

• 75 basis points

• 25 basis points

• 50 basis points

Why is international bond inclusion important for India this year?

• To fund the fiscal deficit with foreign investment

• To stabilize the rupee

• To reduce oil prices

• To increase domestic market participation

What is the current status of India's current account deficit as a percentage of GDP?

• Less than 1%

• Less than 2%

• More than 4%

• Around 3%

What is the primary goal of India's potential green bond issuance?

• To attract global investors

• To develop a local green bond market

• To reduce fiscal deficit

• To stabilize the rupee

What was a positive surprise in the budget according to the transcript?

• Focus on capital expenditure

• Reduction in fiscal deficit

• Increase in tax rates

• Introduction of new subsidies