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Time of India
a day ago
- Business
- Time of India
India bonds inch up before state debt supply, US rate decision
Indian government bonds edged higher in early deals on Tuesday after a two-day selloff, while volumes remained muted ahead of the state debt supply and the U.S. rate decision due a day later. The yield on the benchmark 10-year bond was at 6.3631% at 10:25 a.m. IST, compared with the previous close of 6.3700%. Explore courses from Top Institutes in Please select course: Select a Course Category Bond yields move inversely to prices. Bonds Corner Powered By India bonds inch up before state debt supply, US rate decision Indian government bonds saw a slight increase in early trading on Tuesday, recovering from a two-day selloff, though trading volume remained low. Investors are awaiting state debt supply details and the U.S. Federal Reserve's rate decision. The focus is also on RBI policy decisions and U.S. Fed Chair Jerome Powell's commentary for cues on the domestic policy easing cycle. Retail investors are waking up to bonds—here's why it matters, says Vineet Agarwal Fixed income isn't just for retirees, it belongs in every portfolio: Jiraaf's Vineet Agarwal How Bond duration impacts return in a falling rate regime, Gautam Kaul explains Corporate bonds meet arbitrage: a smarter, tax-efficient play for fixed income investors Browse all Bonds News with Traders said the benchmark bond yield was unable to break past a key technical upside level, so there is some reversal in trend. Investors took a break from selling, which was triggered by falling bets of an immediate rate cut following hawkish commentary from the Reserve Bank of India Governor Sanjay Malhotra. Live Events On Friday, Malhotra said that the monetary policy will place greater emphasis on the outlook for growth and inflation, rather than their current levels. "Traders are mostly on the sidelines till the RBI policy decision as there is no incentive for taking positions," a trader at a state-run bank said. "Focus is on U.S. Fed Chair Jerome Powell's commentary, which could give more cues on domestic policy easing cycle for FY25." The Federal Reserve is widely expected to keep interest rates unchanged on Wednesday. Meanwhile, Indian states are aiming to raise 300 billion rupees ($3.46 billion) via bond auctions later in the day, slightly exceeding the scheduled amount. RATES India's overnight index swap (OIS) rates saw receiving pressure in early trades, as the 10-year bond yield failed to breach key technical level, spurring some buying. The one-year rate dropped 2 basis points to 5.52%, while the two-year OIS rate fell 2 basis points to 5.50%. The liquid five-year OIS rate was down 1 basis point at 5.73%.
Time of India
5 days ago
- Business
- Time of India
Resurgence of India rate-cut wagers revives foreign investor interest in bonds
Foreign appetite for Indian government bonds is back, with inflows picking up steadily over the last month, as investors gauge fresh expectations of a rate cut by the Reserve Bank of India as early as August. The RBI cut rates by a larger-than-expected 50 basis points in June and changed the stance to "neutral", prompting investors to bet on a prolonged pause. Explore courses from Top Institutes in Please select course: Select a Course Category PGDM Data Science Public Policy Management Product Management Project Management CXO Digital Marketing Data Analytics Leadership Others healthcare Design Thinking Artificial Intelligence others Finance MBA Cybersecurity MCA Technology Degree Data Science Healthcare Skills you'll gain: Financial Analysis & Decision Making Quantitative & Analytical Skills Organizational Management & Leadership Innovation & Entrepreneurship Duration: 24 Months IMI Delhi Post Graduate Diploma in Management (Online) Starts on Sep 1, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Gold Is Surging in 2025 — Smart Traders Are Already In IC Markets Learn More Undo But a sharp drop in June retail inflation has some investors reassessing the likelihood of another rate cut. Bonds Corner Powered By Resurgence of India rate-cut wagers revives foreign investor interest in bonds Foreign investors are showing renewed interest in Indian government bonds, driven by expectations of an upcoming rate cut by the Reserve Bank of India as early as August. Subdued inflation and persistent growth concerns are fueling these expectations. Over the past month, foreign investors have net purchased 129 billion rupees in Indian bonds. Three Indian infra investment trusts eye $500 million debt in coming weeks, sources say Grip Invest launches auto compounding investment product for bond investors Despite RBI's rate cuts, Indian G-Sec yields remain range-bound due to US yield pressures, says Rajkumar Subramanian US Treasury pullback from long-term bonds signals policy divergence, says Vishal Goenka Browse all Bonds News with The RBI could implement a modest 25 basis point cut in August if inflation remains subdued and growth concerns persist, said Singapore-based Manish Bhargava, CEO of Straits Investment Management, adding that bond yields are attractive at current levels. Over the last one month, foreign investors have net bought 129 billion rupees ($1.5 billion) of Indian bonds linked to global indexes after selling more than 330 billion rupees in the first two-and-a-half months of the financial year that started on April 1, clearing house data showed. Live Events Analysts said concerns on the growth front are also likely to prompt the central bank to lower rates further. With recent high-frequency data disappointing and indicating the possibility of a further slowdown in growth, "there is potential for more support from the RBI further down the line," said London-based Giulia Pellegrini, lead portfolio manager, emerging market debt at AllianzGI. India's overall economic fundamentals remain solid, keeping the country on investors' radar, she said. A wider gap between interest rates in India and the U.S. would add to the appeal of Indian debt, investors said. That's why a Federal Reserve rate cut could act as a positive catalyst for Indian bonds, as they have historically helped local currency debt markets, said Nigel Foo, Singapore-based head of Asian fixed income at First Sentier Investors. However, current Indian bond yields are lower than where they were in the past at similar policy rate levels, and so are relatively unattractive, he added. The 10-year U.S. yield was around 4.35%, with the Fed expected to cut rates by at least 50 bps in 2025. The Indian 10-year benchmark bond yield was at 6.30%. "India's local debt story remains very compelling on both FX and rates," said Jean‑Charles Sambor, head of emerging markets debt at TT International Asset Management in London, who expects bond yields to decline through this year and next, and finds the middle of the yield curve attractive. ($1 = 86.2470 Indian rupees)
Time of India
18-07-2025
- Business
- Time of India
Fixed Income is portfolio's seatbelt against volatility: Chakri Lokapriya of LGT Wealth India
In this edition of ETMarkets Smart Talk, Chakri Lokapriya, CIO – Equities at LGT Wealth India , explains why fixed income should be viewed as a critical stabilizer in any investment portfolio . Comparing it to a 'seatbelt' that quietly cushions against market volatility, Lokapriya highlights the importance of allocating 20–30% of portfolios to high-quality bonds , especially in today's uncertain global environment. He believes fixed income is not just about safety but about steady compounding and risk management, making it a foundational element in long-term wealth creation. Edited Excerpts – Q) Nifty closed with marginal gains in June, but for the first six months of 2025, it is up over 7%. How do you see markets for the rest of FY26? Any big events to watch out for? A) The scene is the place for a lovely outcome of markets moving higher, and closing CY2025 with a 10% to 12% gain. However, the big elephant in the room is US Tariffs . Explore courses from Top Institutes in Select a Course Category Data Science healthcare Artificial Intelligence Product Management Project Management CXO MCA Data Analytics Degree Operations Management Design Thinking PGDM Leadership MBA Management Digital Marketing Healthcare Public Policy Cybersecurity Finance Technology Others Data Science others Skills you'll gain: Strategic Data-Analysis, including Data Mining & Preparation Predictive Modeling & Advanced Clustering Techniques Machine Learning Concepts & Regression Analysis Cutting-edge applications of AI, like NLP & Generative AI Duration: 8 Months IIM Kozhikode Professional Certificate in Data Science and Artificial Intelligence Starts on Jun 26, 2024 Get Details Skills you'll gain: Data Analysis & Interpretation Programming Proficiency Problem-Solving Skills Machine Learning & Artificial Intelligence Duration: 24 Months Vellore Institute of Technology VIT MSc in Data Science Starts on Aug 14, 2024 Get Details India is expected to conclude the talks by the end of July 2025. And it is evident that India would not budge on allowing access to US agricultural or dairy products, as it is detrimental to the livelihood of 60% of India's farmers. Bonds Corner Powered By India bonds seen steady ahead of RBI's debt sale, liquidity moves Indian government bond yields are anticipated to remain stable as traders await the weekly debt auction. The central bank's substantial liquidity withdrawal operation is fostering investor caution. Rate cut bets have increased following a drop in retail inflation, while shorter duration overnight index swap rates are expected to experience paying pressure due to the RBI's cash withdrawal. Why did RBI accept 79% of buyback bids despite high demand? Japan bonds tread water as wary investors await weekend election ETMarkets Smart Talk | Fixed Income is portfolio's seatbelt against volatility: Chakri Lokapriya of LGT Wealth India RBI plans bond switch to ease redemption load Browse all Bonds News with A tariff deal without the above two items is the big event to watch for and markets would take a decisive directional move based on the outcome of the U.S. Tariff deal with India. Q) How are you managing the volatility in your portfolio? Any key learnings which you would like to share from 1H2025? Live Events A) We are running well diversified portfolios with good earnings visibility. Furthermore, we are taking a balanced approach in rebalancing portfolios to volatile decisions such as raising and lowering tariffs. Q) One of the reports suggested that India Inc.'s profits have grown nearly 3x faster than GDP since FY20. What structural factors are driving this divergence? A) 2020 was a watershed moment for India's corporate in managing cash flows and maintaining sufficient liquidity to counter uncertain periods. Since 2020, many Indian companies have balanced capital expenditure versus profit growth admirably well. Moreover, a number of Sunrise sectors, old-world in many respects such as Defence, Railways, Semiconductors are structurally allowing Corporate India's profits to growth faster than the GDP Q) With the China+1 theme gaining traction, which Indian sectors are best placed to attract global capital and scale? A) In Electronics and Semiconductors: growth is Fuelled by import substitution ,PLI. US and Europe shifting sourcing from China to India. China is the leader in Electronics System Design and Manufacturing (ESDM), (40% of output and 30% of exports). India stands at 2% therefore huge room to grow. The rising share of electronic content across automobiles, CD, Industrial translates into a higher addressable market for EMS. India semiconductor market size to surpass $55 bn by 2026. India's electronics market is at $150 bn, to grow to $500 bn and create 6mn jobs by 2030. PM Modi's goal 100% of electronic manufacturing in India. Q) How is fixed income as an asset class looking for long-term investment? How much money should one allocate as a hedge to combat volatility? A) In an uncertain world, fixed income is your portfolio's seatbelt—quiet, steady, and critical when volatility hits. Allocating 20–30% of your portfolio to bonds can help cushion equity swings and deliver a reliable income. Today's environment of moderating rates and strong credit spreads makes this a smart time to lock into high-quality instruments, such as government bonds, AAA corporates, and select high-yield credits. Think of it as earning while you wait—letting your capital work quietly in the background. The goal isn't just safety—it's smart, steady compounding through cycles. In a well-built portfolio, fixed income isn't optional—it's foundational. Q) Which sectors are likely to remain in the spotlight in 2H2025? A) Energy as a sector will be in the spotlight in 2H2025. India with 1.4 billion population, urbanization, 22 GW by 2032, net-zero by 2070. Retrofitting coal-fired plants for efficiency and nuclear hubs. Renewable energy, targets of 500 GW by 2030 (50% non-fossil fuel electricity), with PLI, waived transmission charges, National Solar Mission, Hydro and Wind. Nuclear power generation target of 100 GW by 2047. For managing solar and wind energy, Battery energy storage systems (BESS) demand to reach 60 GW by 2030. India's abundance in thorium, uranium, solar, and wind reduce import dependency. Q) Can we say that we are in a "stock picker's market" ahead? If yes, what are the key traits investors should look for in FY26 picks? A) Yes Indeed, India was and is a stock pickers market with over 6,000 companies to select from. We aim to look for stocks that have strong earnings visibility due to an acceleration of business, recovering balance sheets. Q) Gold has also seen a tremendous run in 2025 – how do you see the yellow metal shining in 2H2025? Time to book profits or add on dips? A) Past two years have had multiple war-like situations and the US too joined the conflict. And the tariff has left countries finding ways to control inflation. Against this backdrop, Gold continues to be a hedge against inflation and an investment vehicle. Q) How should one play the small & midcap theme? Has the profitability improved compared to large caps? What does the data suggest? A) The cumulative 100bps rate cut significantly reduces borrowing and working capital costs, especially for capital-intensive sectors like power utilities (thermal/renewable) and mining. Infrastructure spending is poised to benefit ahead of the upcoming budget, potentially accelerating revenue growth by 12–18%. The mid cap sector is expected to grow at 17% to 20% outpacing 8% to 10% growth of the large cap. Q) Any sector that is running out of steam and investors should carefully pare their positions? A) Telecom as a sector has huge levels of debt, and regulatory and court interventions and therefore remain cautious. ETMarkets WhatsApp channel )
Time of India
12-07-2025
- Business
- Time of India
RBI to hold buyback auction of 3 G-Secs
Mumbai The government has announced buyback of three government securities worth ₹25,000 crore, the Reserve Bank of India said on Friday. This is the third buyback announcement in this financial year. The buyback auction of three government bonds-yielding 7.27%, 5.63% and 6.99%-all maturing in April 2026 will be held on July 17. Buybacks are a way for the government to pay off debt for next fiscal year to reduce its gross borrowing and manage fiscal deficit, according to bank treasury officials. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thao Dien: Repossessed Houses For Sale At Prices That May Surprise You Foreclosed Homes | Search ads Search Now Undo It also results in RBI infusing durable liquidity in the system. The previous two buyback auctions conducted in June had seen strong demand. The total notified amount was ₹51,000 crore, of which the RBI had accepted bids worth ₹49,600 crore across two auctions. Bonds Corner Powered By NSE, BSE issue advisory to bond investors. Here are 10 things to know BSE and NSE have jointly advised investors using online bond platforms to understand key concepts like Yield to Maturity, credit risks, and interest rate effects, as bond investments carry no guaranteed returns. The move comes amid rising popularity of OBPPs. The case for fixed-income investments: What Gen-Z investors should know Vedanta Resources dollar bonds see minor uptick JPMorgan considers cutting China, India share in EM Bond Index Sebi's bond central to deepen corporate bond market, improve price discovery: Vineet Agrawal Browse all Bonds News with
Time of India
25-06-2025
- Business
- Time of India
IFSCA unveils framework for ESG-linked transition bonds at GIFT City
The International Financial Services Centres Authority has issued a framework that will enable companies that face difficulty in reducing carbon emissions to raise funds at Gift City through Environment, Social and Governance (ESG)-linked bonds. The unified regulator issued Tuesday a framework for issuance and listing of the so-called transitions bonds. 'The said framework will enable the issuers, specifically from hard-to-abate sectors , to raise capital and list their securities at GIFT IFSC, while committing to a credible transition plan and making enhanced disclosures to ensure the interests of the investors are protected,' it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villa For Sale in Dubai Might Surprise You Villas in Dubai | Search ads Learn More Undo Industries such as steel, cement, aviation are classified as hard-to-abate. Companies from these sectors particularly find it difficult to reduce carbon emission because of their heavy reliance on fossil fuels and processes that make decarbonization difficult. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Bonds Corner Powered By Browse all Bonds News with ISFCA noted that ESG-labelled debt securities have played a key role in mobilizing climate finance . But it is generally seen that their application is often limited to sectors/projects that are at near/net zero. 'Transition finance provides a structured pathway for hard-to-abate industries to reduce their emissions progressively,' it said. The framework has four important pillars. These are a credible transition plan at the entity level, alignment with globally recognized taxonomies and technology roadmaps, mechanism for independent external review, and disclosure requirements. Live Events Last week, infrastructure conglomerate Larsen & Toubro raised ESG-compliant bonds amounting to Rs500 crore for a term of three years. This is the first such bond issue under the Securities and Exchange of India's (Sebi) newly issued framework on ESG and sustainability-linked bonds .
