BUDGET IMPACT ON BONDS
Income tax Budget 2024 expectations: 10 ways the finance minister can ease income tax and financial burden of senior citizens
Income tax Budget 2024 expectations: A notable percentage of taxpayers in India are senior citizens since they receive income, frequently through passive means. ET Wealth Online interviewed three specialists to discuss senior citizens' expectations for the forthcoming Union Budget 2024.
8% GDP growth not sustainable yet; bond index inclusion may see short-term volatility: Abheek Barua
After the inclusion in the JP Morgan global bond index, in the short term. we need to prepare for volatility. But in the long term, the collateral and the second-round benefits are huge, says Abheek Barua. He expects this to lead to an improvement in the fixed-income ecosystem, which unfortunately has not taken off that well
India inclusion in JP Morgan Bond index from today, $25-30 bn flow expected. What it means
India, which has been on index watch since October 21, upon its inclusion will have the single highest duration across the index at 7.03 years, with an above average yield-to-maturity at 7.09%, a JP Morgan note said.
Wait for earnings and Budget to identify attractive sectors for investment: Deepak Shenoy
These companies are quite cyclical, moving between downturns and upturns. Recently, there has been an upturn for Muthoot and Manappuram, partly because IIFL, a major player in the gold financing space, faced some RBI action leading to a slowdown in its gold lending portfolio.
Union Budget 2024: What is govt borrowing and how does it impact fiscal deficit?
Government borrowing plays a vital role in meeting spending needs, with the 2019 Budget outlining the borrowing program. This involves the government borrowing funds domestically or internationally through the issuance of securities like G-secs and Treasury Bills. The borrowing, a form of capital receipt, is crucial when revenue falls short. The government's borrowing calendar is managed by the Department of Expenditure in collaboration with the Reserve Bank of India.
Which are the best asset classes to own over 1-year, 3-year & 5 years? Nilesh Shah answers
Nilesh Shah says up to one year, he will recommend an arbitrage fund for a high taxpayer or debt funds, money market funds and short-term bond funds where one could have the limited benefit of a drop in interest rates. Between one to three years, one can go towards longer duration bond funds. Post-budget, one can also look at investment in precious metal.
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Budget 2024 an opportunity for Nirmala Sitharaman to play some good shots
The Lok Sabha election results in India surprised many as they diverged from the exit polls. The focus now shifts to the Union Budget 2024, setting the economic tone for the future. All eyes will now be on Finance Minister Nirmala Sitharaman.
Sebi for benefits on zero coupon zero principal bonds
To encourage social sector spending, markets regulator Sebi has suggested that the government should allow tax benefits to companies investing in zero coupon zero principal bonds issued by not-for-profit organisations listed at the social stock exchange.
Nifty to remain in consolidation mode ahead of Budget: Rohit Srivastava
So, I think that sets us up for a potential continued move to the upside. But I do think it can remain. See, till we really significantly surpass say 23,600, we can remain in a consolidation mode ahead of the budget.
Good time to take some money off the table; wait for next major event: Sanjiv Bhasin
Grasim seems very sweet over there. Our top pick continue to be some of the insurance companies, HDFC Life had a smart comeback. I think that there is a block deal in Mphasis, do not miss out on that because I think Mphasis as a stock on the barometer of a midcap can be an outperformer from here, I would say something closer to 3000.
Home loan borrowers may have to wait longer for lower EMIs but a rate cut likely this year; how to make the most of it
Home Loan Interest Rates: The Reserve Bank of India (RBI) in its recent Monetary Policy Committee meeting decided to maintain the repo rate at 6.5%, prolonging the wait for home loan borrowers seeking relief from high interest rates and increased EMIs. Despite the current pause in repo rate the possibility of a rate reduction this year is still there.
Leading Indian hedge fund Avendus Capital sees banking as a top bet
Avendus Capital CEO Holland uncertain about pre-budget rally, mentions potential capital gains tax change ahead of India's full budget presentation in July
Market will soon start acting and reacting to economic fundamentals
The unexpected election results and resulting uncertainty have triggered market jitters, reminiscent of similar situations in 2004 and 1991
Electoral shock dashes hopes of rate cut
Food inflation challenges RBI, impacting rate cuts. Elections, populist spending, and fiscal landscape influence rate cut decisions.
Nifty bulls scream 'Abki baar 24,000 paar' after exit polls predict Modi 3.0
Exit polls indicate a potential hat-trick win for PM Narendra Modi in Lok Sabha, boosting Nifty's rally hopes to cross 24,000. Market analysts foresee a surge if BJP secures victory on June 4.
What kind of election results would shake up the markets? Seshadri Sen answers
Seshadri Sen discusses the impact of BJP's majority in the upcoming elections on the economy, focusing on manufacturing, infrastructure, and capital goods sectors. sen says the the only negative outcome for the markets is that the BJP falls considerably short of the absolute majority. All other outcomes are largely the same.
PM Modi-led govt reshaped Budget in last 10 years: FM Nirmala Sitharaman
Finance Minister Nirmala Sitharaman highlighted that over the past decade, the Modi government has transformed the Union budget from a simple expenditure record into a strategic roadmap for equitable distribution. The minister emphasized the government's commitment to optimizing the utilization of taxpayers' money by ensuring it is allocated for the most effective purposes.
Nifty hits record high, Sensex jumps 1,200 points. Is RBI behind the sugar rush?
Nifty hits a record high while Sensex surges 1,200 points, fuelled by RBI's Rs 2.1 lakh crore dividend for the government. Analysts anticipate positive macroeconomic effects, including potential fiscal deficit reduction and infrastructure spending boost.
How will RBI's Rs 2.11 lakh cr dividend payout to government help Indian economy? A Balasubramanian answers
So, I think combination of these two things put together have made RBI to come with about highest ever dividend, especially at a time where the market is also generally getting, not market, in general, the bond market keeps a very close eye on fiscal numbers.
Swaminathan Aiyar wonders how RBI managed to give Rs 2.1 lakh cr dividend to govt, says it will make a huge difference to July Budget
Finance Minister aims to reduce fiscal deficit from 5.8% to 4.5% in two years, relying on non-revenue RBI transfer. This strategy facilitates reaching 5.1% deficit this year. Challenges remain in sustaining revenue deficit reductions alongside fiscal targets. Aiyar says it is not very clear at this point what has resulted in this rise in the RBI dividend. Once we have greater clarity on that, we will be able to find out what are the consequences for different parts of the economy.
Indian 10-year bond yield at near 1-year low post record surplus transfer by RBI
Indian government bond yields declined to a near one-year low after the central bank approved a record surplus transfer of 2.11 trillion rupees to the government, improving demand in Indian debt markets. Alok Singh from CSB Bank mentioned that the 10-year yield should move below 7% soon.
India's FY24 fiscal gap may be slightly better than revised estimates: Official
The central government's fiscal deficit for FY24 is expected to be slightly better than revised estimates, thanks to higher-than-anticipated revenue receipts. Despite slower nominal growth, deficit-to-GDP ratio is estimated to improve. Direct tax revenue exceeded expectations, and expenditure remains on track. The government is prepared to manage potential capital inflows from JPMorgan's inclusion of Indian government bonds in its index.
Fitch sees rupee rebounding to 82 per dollar on bond inflows
The rupee is expected to appreciate to 82 per dollar by the year-end, from about 83.50 currently, Jeremy Zook, a director at Fitch in Hong Kong, said in an interview last week. The Reserve Bank of India may continue to prevent any sharp swings in the currency by absorbing inflows, he said.
Fiscal prudence vs populist pomp: Nirmala Sitharaman chooses the road less travelled
The Budget numbers are undoubtedly encouraging. It trimmed the fiscal deficit to 5.8% of GDP, a slight but symbolic reduction from the previously budgeted 5.9%, and eyes a more ambitious 5.1% for the next financial year.
Bond yields hit 7-month low as Centre announces lower-than-expected gross borrowing
Government bond yields slid to their lowest levels since June, bringing down the cost of borrowing across the economy, as the Centre took the unusual step of dipping into a tax fund kitty to bring down its gross debt issuances for FY25, pleasantly surprising the market with lower supply.
Sandip Sabharwal explains why post Budget it makes sense to pick up consumer stocks
Sandip Sabharwal believes that the reduction in fiscal deficit will lead to lower interest rates, reduced inflation, and increased volume growth and consumption growth. This will create an opportunity to buy consumer stocks. The previous high inflation and employment issues impacted consumption, but with lower interest rates and entrenched inflation, volume growth on the consumption side is expected to come back. Going into July, there may be relief on income tax rates, but there are also expectations of tweaks on capital goods and inheritance tax.
Budget 2024: Economists say fiscal numbers look more realistic
Analysts and economists praise the interim Budget's fiscal projections, highlighting the government's commitment to fiscal consolidation. The projected fiscal deficit numbers for FY24 and FY25 indicate that the target of 4.5% fiscal deficit by FY26 is achievable. The net market borrowing in FY25 will positively impact the bond market and 10-year G-sec yields. The higher than expected capex and lower fiscal deficit suggest healthier expenditure quality.
India Budget: New Delhi to borrow Rs 14.13 lakh crore in FY25, bond yields plunge
Budget Announcements: The Indian government plans to borrow 14.13 trillion rupees ($170.36 billion) in the next fiscal year, lower than economists' estimates, according to Finance Minister Nirmala Sitharaman. Net borrowings are expected to remain largely unchanged from the current fiscal year, at 11.75 trillion rupees. The funds will be used to finance a fiscal deficit of 5.1% of GDP, with the government also conducting switch auctions worth 1 trillion rupees. Additionally, 4.66 trillion rupees will be raised through India's small savings fund to cover the budget gap.
Interim Budget 2024: What is bank recapitalisation? How is it done?
Budget 2024 Date and Time: Bank recapitalisation, means infusing more capital in PSBs so that they meet the capital adequacy norms. The government, using different instruments, infuses capital into banks facing shortage of capital.
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