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India at high risk of balance of payments ‘shock’: Morgan Stanley
Agam Gupta, MD- Head of FXRC Trading - India at Standard Chartered told NDTV Profit that a mismatch in demand-supply has led to the rupee reaching the 54 per dollar level.
03 May 2012, 12:51 PM IST 
Michael Perschke, head of Audi India, poses with the new A4 at its launch in Mumbai.
India faces a "high" risk of a shock in its balance of payments, unless the government cuts spending, including on subsidies, or oil prices decline sharply, Morgan Stanley warns.
India is the only country in the region with a current account deficit, and a wide one at that, given expectations it hit a record high for the year ended in March.
Given the vulnerability on so many domestic fronts, any signs of global risk aversion would particularly hit flows and the rupee, Morgan Stanley adds.
Copyright Thomson Reuters 2012