Go long 3-mth US dollar,Indian Rupee on twin deficits: Nomura

Initiate long 3-month US dollar,Indian Rupee positions as structural issues relating to India8217;s large current account and fiscal deficits remain intact,Nomura said.

The central bank8217;s cautious stance on future rate cuts and the pullout of a key ally from the ruling coalition also likely to dampen market sentiment,Nomura adds.

The investment bank says potential for further positive reform announcements and measures in the current parliamentary session ending on March 22 is low.

Nomura also sees a risk of a further slowdown in net foreign portfolio inflows in the near-term.