Benchmark indices ended marginally lower on Thursday on expiry of derivatives contracts and on lingering concerns over government borrowing exceeding target, but metals stocks such as Vedanta rose tracking global commodity prices.
The Centre, on Wedensday, said that it looks set to breach the fiscal deficit target this year, with lower-than-expected revenue prompting it to go for additional borrowing of Rs 50,000 crore from the market. The borrowing is over and above the budget estimate of Rs 5.80 lakh crore for 2017-18, which would lead to the government missing its fiscal deficit target of 3.2% of the gross domestic product (GDP) for the first time in four years.
At the same time, the government lowered its borrowing through short-term treasury bills by Rs 61,203 crore. This has made the task of exactly calculating the fiscal deficit a bit tedious exercise.
That sent the yield on the benchmark 10-year bond up as much as 11 basis points to a 17-month high, though the reaction in shares was more muted.
Caution also set in ahead of the expiry of futures and options contracts at the end of the session.
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