INDIAN DEBT INSTRUMENTS
Proxy debt plays may slow as JPM index inclusion progresses
Analysts predict the Centre will maintain or reduce the fiscal deficit target to 5% of GDP in the upcoming budget, as foreign investment in Indian government bonds surges post JP Morgan index inclusion.
Savings down, financial liabilities up: RBI says household debt warrants close monitoring
The Reserve Bank of India highlighted rising household financial liabilities post-Covid, with overall savings dropping to 18.4% of GDP in FY23 from an average of 20% between 2013-22. Household debt, driven by increased retail loans, is mostly held by prime credit quality borrowers. Savings are now shifting towards physical assets and non-bank investments.
BigBasket, 1mg’s plans for capex; win for epharmacies in Madras HC
Tata’s online grocery BigBasket and epharmacy 1mg will largely depend on debt capital to fuel expansion this fiscal. More on this in today’s ETtech Morning Dispatch.
JPMorgan says foreign holdings of Indian bonds could double over next year
JP Morgan's inclusion of Indian bonds in the GBI-EM Global index suite is expected to attract $20-25 billion in foreign flows. Over $10 billion has already been invested in Indian government bonds, as per Reserve Bank of India data.
Derivative products on Indian bonds see strong global demand
Overseas investors are flocking to Indian assets through a derivative product ahead of government bond inclusion in the JPMorgan index, accounting for 30% of $10 billion flows into local debt in nine months.
Game's Bond, Electoral Bond: Two reforms that India's new government should undertake
All political funding should be routed transparently through electronic means, via UPI, IMPS, Neft or RTGS. Let parties crowdfund themselves. In a democracy, money should move from the people to their parties, not from politicians to voters.
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Investment returns during coalition govt: Modi 3.0 might be good for stock market, mutual fund investors, show trends during previous govts
How will be Modi 3.0 for investments? The stock market experienced a sharp decline following the Lok Sabha elections 2024, causing concern among young investors. They are worried about their investments as a coalition National Democratic Alliance (NDA) government prepares to take oath on June 9, 2024. Will the volatility in the stock market continue? How will NDA-3.0 be for your hard-earned money? Is there a bad government for your investments? Should the incoming government worry debt investors? Should you invest in equities, mutual funds or debt instruments? Questions such as these are worrying investors. So here are some answers that should give an idea of what is in store for you in the next five years.
Beyond public market: The growing appeal of alternatives in India
The asset management industry in India has witnessed substantial growth, particularly in alternatives like AIFs, InvITs, and REITs. Private market alternatives offer access to previously unavailable asset classes, but investors should carefully assess asset managers for rigorous evaluation processes and proven track records.
FPI buying of debt via voluntary retention route gathers pace
Foreign holdings in India's debt market have surged, with FPI investment in the voluntary long-term route hitting $508 million in May. Recent deals by companies like Vedanta and Nirma have contributed to the rise, with market players expecting further activity as Indian sovereign debt joins a JP Morgan index.
Tata Steel announces $2.1 billion plan to meet twin objectives
Additionally, Tata Steel announced that it will convert debt instruments valued at $565 million (Rs 4,661 crore) held in its Singapore subsidiary into equity shares. Both the capital infusion and the debt-to-equity conversion are planned to be completed within this fiscal year.
Foreigners boost India corporate debt buying before govt bond index inclusion
Foreign investors show increasing interest in Indian rupee-denominated corporate debt ahead of the inclusion of Indian government securities in a global bond index, expecting passive inflows of around $25 billion. Recent data highlights purchases in corporate bonds, interest in launching ETFs, and robust demand for dollar bonds.
Easing global yields bring FPIs back to Indian govt bonds
From May 8 to 22, foreign portfolio investors' holdings of fully accessible route (FAR) Indian government bonds increased ₹3,304.8 crore to ₹1.6 lakh crore, showed latest data on the Clearing Corporation.
Infrastructure stocks: Stay bullish, hedge to participate in next round of re-rating: 6 infra stock with an upside potential of up to 39%
Among the sectors which have seen a strong re-rating in the last five years, probably infrastructure is amongst the top ones. Like many other sectors here also the re-rating has been largely due to policy push and government spending. If one looks at the performance of the companies in the last five years, there has been clearly strong growth across the board. So, policy continuity becomes critical for this sector and the stocks. The
'Stock market rally' from June 4, predicts PM Modi: Should stock, mutual fund, gold investors tweak portfolios before Lok Sabha election results?
Lok Sabha election results 2024: Prime Minister Narendra Modi said that the stock market would have a rally once the election results are out. A few days back, Union Home Minister Amit Shah asked investors to buy the dip before June 4, 2024, as the market will shoot up after that. Now the question is what should investors do till the election results are out? Is it time to accumulate more stocks or avoid the volatility and play it safe? Find out here
Exotic corporate debt products lure yield-hungry Indian savers
Private credit firm Vivriti Asset Management Pvt. says sales of securitized debt instruments, or SDIs, are on the rise.
FPIs turn cautious, withdraw Rs 325 cr from Indian equities so far in April
FPIs have turned cautious as they pulled out Rs 325 crore from Indian equities in the first week of this month owing to relatively high valuations and the upcoming general elections.
IREDA Board approves Rs 24,200 cr borrowing for FY25
According to the filing, the Board of Directors, in its meeting held today -- Thursday, March 28, 2024 -- inter-alia has approved the borrowing programme of up to Rs 24,200 crore for FY 2024-25.
Long-duration debt mutual funds beat Nifty YTD. Here’s how they performed
For investors with a longer view and higher risk appetite, long-duration debt mutual funds offer the potential for bigger gains.
Maldives President Mohamed Muizzu seeks debt relief from India after insisting on withdrawal of military personnel
Muizzu seeks debt relief from India, appreciates aid and emphasizes national security. He expedited projects and achieved results through discussions, amid demands for repatriation of Indian military personnel and strategic importance of Maldives' proximity to India.
Debt mutual funds to offer higher returns in next 1-2 years: How investors can benefit
Debt mutual fund returns: Apart from RBI policy rate cuts, there is other action happening in the debt markets that will impact the returns investors can earn from debt mutual funds. Debt mutual funds returns in the coming years will be impacted due to lesser government borrowings as well as inclusion of Indian government securities in the global index.
ETMarkets Smart Talk: How to invest money in FY25? Allocate 60% to equities, 15% to debt and 15% to commodities: Samir Bahl
Samir Bahl recommends a significant allocation to equities for long-term wealth accumulation, balancing with debt instruments and commodities for diversification. He advises a gradual liquidation strategy to safeguard gains and reinvestment opportunities in dynamic markets. Bahl says: "This year we may see a continued rise until May with potential healthy corrections in early June post the run we will witness -- prior to general elections."
Total return swaps in demand with India's bond index entry
Referred to as a total return swap (TRS), the product is an offshore derivative instrument (ODI), through which HSBC has carried out trades worth $75 million in only three weeks since the UK-based bank started offering it in the GIFT City in the second week of February.
Beyond the buzz: Navigating the market trends for 2024
The first quarter posed challenges for Indian indices with the Hindenburg research report, the hawkish Fed, and the SVB crisis. The budget sparked hope, laying a foundation for sustainable domestic growth, albeit with the removal of indexation benefits on debt instruments.
2 mutual fund schemes which offer tax efficiency plus debt-MF like returns
Alternative to debt mutual funds: From FY 2023-24 (April 1, 2023), the rules for taxation for debt mutual funds were revised. The government removed the benefit of LTCG indexation benefit at the time of sale of debt mutual funds. However, there are still two mutual fund schemes that are tax efficient and offer debt mutual fund like returns.
ETMarkets Smart Talk: FDs & other options can be prudent to navigate interest rate environment in 2024: Rajesh Cheruvu
"As the market exuberance gradually subsides and valuations again realign with underlying fundamentals, largecaps offer a relatively better margin of safety. However, it is essential to note that from a mutual fund (MF) perspective, the decision to book profits and realign the portfolio carries the potential for increased portfolio churn."
ETMarkets AIF Talk: We see venture debt to be $5 billion investable opportunity in near future: Pranav Parikh
"In the current scenario – given that venture capital (VC) funding has dried up, companies are hard-pressed for funds to support growth & move towards profitability. There is a strong demand for VDF, particularly in growth/late-stage companies, in the backdrop of a weak equity funding environment to enable lower dilution."
Nabard plans first green bond sale by March, to seek Rs 5,000 cr
Senior officials at the development financier said that the green bonds would likely be of five-year maturity and that the overall bond sale pipeline lined up for the second half of the current financial year was around ₹30,000 crore.
JPM Index inclusion is Indian bonds' liberalisation moment
India's inclusion in the JP Morgan GBI-EM Global Diversified Index will likely do to sovereign debt what economic liberalisation did to equity ownership in local businesses: Diversify debt holding beyond the traditional bailiwicks of local lenders, insurance companies and the central bank.
Rishabh Instrument among 6 IPOs to watch out this week
Primary market from 19 to 25 August has been quite fascinating, with three mainboard IPOs opened for raising a total of Rs 750 crore, said Mahavir Lunawat, Managing Director of Pantomath Capital Advisors.
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