Indian Govt Works Overtime To Meet Divestment Targets

Given the failure of India’s 2G auctions, the government is in an overdrive to meet its dis-investment targets. This week saw New Delhi divesting a 4% equity position in Hindustan Copper to raise about Rs.8.5b. A project to sell the govt’s 9.5% stake in NTPC to raise another Rs.130b is also in the pipeline. The market is starting to lose faith in the 5.3% fiscal deficit target, and that sentiment is being reflected in weak equity inflows and the depreciation in the rupee.