"In view of the economic slowdown, the government is reported to be open to allowing the fiscal deficit to exceed this year's target as it considers a stimulus package in the range of Rs 40,000-50,000 crore by way of increased spending", Desai told IANS.
"The markets saw a sell-off of over 1 percent which in our opinion is on account of weak global cues which in turn were due to geopolitical tensions surrounding North Korea".
Weighed down by banking stocks, the 30-share BSE Sensex opened lower and fell further before settling down by 447.60 points, or 1.38 per cent - its biggest single-day fall since November 15 past year - at 31,922.44. The loss was the largest in almost ten months. This is also the weakest closing since September 11 when the index had hit 31,882.16. At 9.40 a.m, the Sensex was trading down 243.40 points or 0.75% at 32,126.64 with 26 components falling.
The Street could have been jittery over the economic prospects after the government announced plans to boost the economy, Moneycontrol said.
For the mid-day report, click.
The rupee today dropped by 31 paise to a four-month low level of 65.12 against the U.S. dollar on frenetic dollar demand from importers and banks. The early losses in domestic equity markets and unabated foreign fund outflows weighed on the rupee.
Here's what all you need to know about today's market mayhem. We feel this outperformance is likely to be maintained in the long-term while today's stiff reaction may have to do with FII selling in equity and debt and upcoming F&O expiry next week. "Although this credit growth had contributed to strong real GDP growth and higher asset prices, we believe it has also diminished financial stability to some extent", S&P said in a statement.
North Korea said on Friday it might test a hydrogen bomb over the Pacific Ocean after US President Donald Trump said he would destroy the country if it threatened the United States or its allies.