Locals Wary of Modi Budget as Foreigners Sell $6 Billion of Debt

The risk of record borrowings is turning Indian bond investors skeptical going into the government’s budget Wednesday, just as foreign funds exit the market at the fastest pace since 2013. Primary dealers have rescued two of the last four sovereign-debt auctions, as Prime Minister Narendra Modi’s administration is expected to announce an unprecedented 6.25 trillion rupees in gross market borrowings to fund the fiscal deficit, a survey conducted by Bloomberg shows.