But sentiments reversed immediately (not lasting even for a day) with the 10-year back towards 7.05%.And why wouldn’t they? Special dividends from RBI and PSUs along with marginally higher target direct tax collection could further fetch Rs 25,000-30,000 crore. October GST collections dropped to Rs 83,350 crore compared with an average monthly collection of Rs 91,000 crore between July and September in 2017.Thus, the market worry isn’t overstated. This will remain a big concern for India’s inflation and current account deficit (CAD). Average liquidity surplus (including MSS) has fallen to Rs 1.6 lakh crore in November from Rs 3.7 lakh crore between April and October 2017.

Source: Economic Times December 01, 2017 08:56 UTC