India bonds slump as government raises deficit target, shares whipsaw

MUMBAI (Reuters) - India's benchmark 10-year bonds slumped on Thursday after the government set a higher-than-expected fiscal deficit target for the year starting in April.Indian shares also fell briefly after the government imposed a long-term capital gains tax, but major indexes later clawed back into positive territory.

In its budget unveiled earlier in the day, the government said its fiscal deficit would be 3.3 percent of gross domestic product in 2018/19, higher than market expectations of 3.2 percent and compared with a previously projected.....

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