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India will present its Union Budget today. Although Budget is a statement of annual accounts, it's considered an important document for its wider policy implications. Finance Minister P Chidambaram has a tough task today. The country is going through a price rise, and he will have to balance the rising inflation and growth. If he puts in major curbs on inflation, then that can affect demand and growth. So we need to watch what Chidambaram will do on this account. There is an impression that the government may go in for some excise cuts to bring down the prices of some manufactured products.

On the equity side, the Indian stock markets have already fallen by more than 1,300 points from its high of 14,700. So the market has already lightened its position ahead of the budget. But what also weighs is the heavy sell-off in China, followed by all emerging markets and also the US markets.

It's a difficult day for Chidambaram.