The high government borrowing and its impact on interest rates also made investors jittery. Investors turned wary about financial stocks on concerns heavy government borrowing could harden bond yields and erode profits of banks, who are the biggest buyers of government paper.
Analysts said corporate earnings will be the next driver for the market in the short term. Though results are expected to be better than the previous quarter, for a longer rally it depends on how the government takes the growth momentum forward. Infosys Technologies is expected to report on Friday its quarterly earnings rose 7.3 per cent on year.
Epaper
Newsletter
Stocks
Weather
Horoscope
