Indian market tumbles 5.8 percent on deficit fears

Indian stocks plunged Monday on concerns of a ballooning fiscal deficit and disappointment that the finance minister did not announce major liberalization measures in his new budget.

The benchmark Sensex index tumbled 869.65 points, or 5.8 percent, to close at 14,043.40.

Finance Minister Pranab Mukherjee said increased spending in the new budget _ aimed at reviving growth and creating jobs _ would inflate the fiscal deficit to 6.8 percent of gross domestic product for the fiscal year through March 2010. That's up from 6.2 percent last fiscal year, and 2.7 percent the year before that.

India's stock market has soared since May's national elections on hopes that the ruling …