Nomura, a leading global brokerage based in Japan, has said that the falling prices of gold and fuel in the international markets will allow Indian to reduce its current account deficit faster.

The brokerage expects the central government reduce the current account deficit by one percentage point to 4.3 per cent during 2013. However, it warned that the current account deficit would still remain high and it would a cause of concern to fund the deficit in the country in the coming year. It noted that that the current account deficit touched a historic high of 6.7 per cent in the December quarter.

"If commodity prices are sustained at today's lower levels, the current account deficit may improve by around 1per cent of GDP to 4.3 per cent in 2013, from our base case of 5.3 per cent," it said in a note.

Experts said that the falling prices of crude oil and gold will reduce the country's current account deficit, giving more boost to the stock market in the country. There are indications that the improved position in the current account position will allow the government to strengthen its financial position.