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India's deficits and short-term debt levels are "disturbing," but it is not facing a repeat of a 1991 balance of payments crisis, Reserve Bank of India chief Duvvuri Subbarao said.
Dependent on imported oil which it then subsidises, India is exposed to external shocks such as high crude prices and has seen its fiscal and current deficits blow out in recent months, triggering some economists to warn of a looming crisis.
In 1991, India came close to defaulting on foreign debt payments when the first Gulf War drove oil prices up, leading to a depletion of foreign reserves and a currency crash.
Subbarao said the economy was far more resilient now and that the probability of an "implosion" was low.
India's current account deficit for last year is estimated to be higher than in 1991, and short term debt makes up twice as much of total debt as it did in 1991, the RBI governor said.
"That is quite a disturbing picture," he said. "Nevertheless, I would still argue that in 1991 an implosion was imminent, in 2012, an implosion in not imminent."
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Nifty....Today Face Resistence at......5155...5190...5245
Nifty.....Today Support at ....5025...4975...4925
Nifty Range...4200--------6600
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NEXT TGT FOR
WE SHORT NIFTY @6100 TGT 5350 / 4800
OUR 1 TGT HIT NIFTY 5350 OUR 2 TGT ALSO
DONE 4850
DONE 4850
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1.Stock Specific Movement Expected Today ......
INTRADAY HOT STOCKS: 08/05/2012
BUY MNM @ 698 TGT 702/705/708 SL 695 SELL BELOW 695
BUY ICICI BK @ 850 TGT 858/865/870 SL 842
BUY SBI@ 2025 TGT 2040/2050/2075 SL 2010 SELL BELOW 2000
BUY SUNPH AB 602 TGT 605/608/612 SL 598
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