Latest news with #Rupee
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Business Standard
a day ago
- Business
- Business Standard
Rupee reverses early gains on likely FPI outflows; ends lower at 86.37/$
Indian Rupee gave up early gains to extend losses to Tuesday on likely foreign outflows as the dollar index and oil prices remained lower. The domestic currency closed 7 paise lower at 86.37 against the dollar on Tuesday, according to Bloomberg. The rupee has witnessed nearly 0.88 per cent depreciation in the current calendar year. Rupee traded lower as domestic capital markets remained weak and the dollar index held flat to slightly positive near 97.86, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. "Market participants now shift focus to Fed Chair Powell's upcoming speech, which could influence global currency sentiment. Rupee is expected to remain within a range of 85.75–86.60." The currency fell for the fifth straight session on Tuesday due to sustained dollar demand from importers. Selling in equity markets also weighed on the currency in the previous session. On Monday, FPIS sold equity worth ₹1,681.23 crore and has offloaded stocks worth ₹4,742 crore so far this month. "Foreign portfolio investor (FPI) demand for dollars remains strong, while the Reserve Bank of India (RBI) is intervening at higher levels to support the rupee," Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, noted. Investors' focus will be on US Fed Chair Jerome Powell's speech today, along with money supply data. On the tariff front, the next round of formal negotiations between India and the US has been pushed beyond the August 1 deadline amid continued uncertainty over an interim trade deal. Uncertainty over the eventual state of tariffs globally has been a huge overhang for the forex market, analysts said. After falling for five straight months, the dollar index has recovered 1.5 per cent in July on strong economic data and less probability of an immediate rate cut. The measure of the greenback against a basket of six major currencies was down 0.04 per cent at 97.81.
Time of India
2 days ago
- Business
- Time of India
India's investment trusts to expand debt fundraising as yields drop, analysts say
Debt fundraising by India's asset-backed investment trusts is expected to keep rising after exceeding $2 billion in the first half of 2025, as falling interest rates continue to fuel strong investor demand, analysts said. The real estate investment trusts ( REIT ) and infrastructure investment trusts ( InvIT ) raised over 178 billion rupees ($2.07 billion) in January-June, compared with 56 billion rupees in the same period last year, according to data aggregator Prime Database. Explore courses from Top Institutes in Select a Course Category others Design Thinking MCA Data Science Management Others Data Science Leadership Product Management Artificial Intelligence MBA Project Management Digital Marketing Public Policy CXO Data Analytics Cybersecurity Healthcare Degree Technology Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT - ISB Cybersecurity for Leaders Program India Starts on undefined Get Details "Bonds offer a lower cost of capital compared to traditional bank financing, especially for highly rated trusts with stable, long-term cash flows," Arka Mookerjee, partner at JSA Advocates and Solicitors, which provides legal advice to corporates. Bonds Corner Powered By Corporate bonds in India: From institutional stronghold to broader participation India's corporate bond market sees record growth in FY25. Issuance rises by 28%, signaling increased corporate capex. The overall bond market touches ₹226 lakh crore. Retail participation remains low, but accessibility improves with smaller investment sizes. Interest rates ease, making bonds attractive. Platforms like Jiraaf simplify bond investments. Corporate bonds offer a balanced risk-return profile. India bonds advance as traders build positions for another rate cut Rupee to track dollar recovery, bond market focused on rate cut bets IndusInd Bank to consider raising funds via long-term bonds India bonds flat, traders eye debt supply for cues Browse all Bonds News with "The predictable income profiles of REITs and InvITs make them well-suited to debt financing, attracting institutional investors seeking yield-bearing, asset-backed instruments." Corporate bond yields have tumbled over the last few months, as the central bank infused liquidity and slashed interest rates by 100 basis points, while banks have lagged in lowering their lending rates. Live Events Embassy Office Parks REIT, IndiGrid Infrastructure Trust, Cube Highways Trust and Nexus Select Trust are among the firms that have tapped the bond market . Embassy REIT is planning another bond issue, Reuters reported last week, while others are also in early talks. Bonds typically have fewer restrictions than bank loans, allowing REITs to use the fund across multiple properties within the portfolio, said Lata Pillai, India senior managing director and head of capital markets, JLL, a global real estate services firm. The trusts, which need to disburse at least 90% of net distributable cash flows to unit holders, say cheaper funding allows them to provide better returns. Bond fundraising provides clarity to these trusts on planning their finances, while top credit ratings attract marquee investors such as mutual funds and insurers. "The AAA-rated structure gives greater credibility, visibility and better pricing," said Krishnan Iyer, chief executive officer at NDR InvIT, adding they also offer resilience to market volatility. With infrastructure and real estate sectors gaining momentum, investors see REITs and InvITs as a compelling blend of fixed-income stability and long-term growth, said Suresh Darak, founder of Bondbazaar, an online bond trading platform. ($1 = 86.1700 Indian rupees)
Time of India
3 days ago
- Business
- Time of India
Corporate bonds in India: From institutional stronghold to broader participation
India's fixed-income landscape is undergoing a quiet yet powerful shift. While equity markets have long dominated headlines, a new narrative is emerging in the bond market in India, led by record-breaking corporate bond issuances , deeper institutional involvement, and a growing appetite for predictable, inflation-beating returns. In FY25, companies raised a record ₹9.9 lakh crore through corporate bonds, according to recent data released by the Reserve Bank of India (RBI). That's a 28% increase over the previous year. The rise in corporate bond issuance signals growing traction in India's corporate bond market. This also points to an uptick in private corporate capex. The increased corporate debt outlay is likely to power growth, spearheading India to the third-largest economy position by 2028. Even as issuance soars, one question remains: Are retail investors benefiting from this growth, or is their participation in the corporate bond market still lagging? Bonds Corner Powered By Corporate bonds in India: From institutional stronghold to broader participation India's corporate bond market sees record growth in FY25. Issuance rises by 28%, signaling increased corporate capex. The overall bond market touches ₹226 lakh crore. Retail participation remains low, but accessibility improves with smaller investment sizes. Interest rates ease, making bonds attractive. Platforms like Jiraaf simplify bond investments. Corporate bonds offer a balanced risk-return profile. India bonds advance as traders build positions for another rate cut Rupee to track dollar recovery, bond market focused on rate cut bets IndusInd Bank to consider raising funds via long-term bonds India bonds flat, traders eye debt supply for cues Browse all Bonds News with A ₹53.6 lakh crore corporate bond opportunity untapped by retail India's overall bond market has now touched ₹226 lakh crore in size (around USD 2.6 trillion), as per RBI's June 2025 Financial Stability Report. Of this, corporate bonds in India account for over ₹53.6 lakh crore in outstanding stock. The rest includes government bonds, treasury bills, and state development loans in India. Yet, despite this expansion, the Indian bond market remains dominated byinstitutional investors. Mutual funds, insurers, banks, and pension funds still hold 96% of outstanding corporate bonds, according to market estimates. Retail participation rate, by contrast, remains in the low single digits—a glaring gap compared to their enthusiasm for equities and gold. Why retail investors hesitated — and why that may be changing Retail investor caution wasn't entirely unfounded. Until recently, many top-rated bonds had minimum investment sizes of ₹1 lakh or more. This ruled out many retail investors. The Securities and Exchange Board of India (SEBI) reduced the minimum ticket size to ₹10,000; these changes have improved the accessibility of the bond market . Liquidity is the second pain point, as the secondary corporate bond market remains uneven, with only 3.8% of the total outstanding stock traded monthly. This lack of depth made it harder for individuals to exit their positions before maturity. This concern is especially relevant for those accustomed to the liquidity of stocks or mutual funds. But the winds are shifting. The minimum investment size has come down sharply. The bond market's liquidity is gradually improving, thanks to stronger regulations, better transparency, and greater accessibility and visibility. Online bond platforms such as Jiraaf are also making it easier for retail investors to participate. The macroeconomic environment is shifting. Interest rates are now easing, with the RBI cutting the repo rate by 100 basis points in 2025. Inflation is gradually cooling. This is prompting more investors to turn to fixed income securities to lock in higher yields. Currently, AAA-rated corporate bonds yield 30-50 basis points more than comparable fixed deposits, while AA-rated corporate bonds offer 50-200 basis points higher returns with a similar level of risk to fixed deposits. The return profile shifts dramatically in favour of investors when A and BBB-rated bonds come into play. These bonds offer 200 to 500 basis points more than fixed deposits with a very balanced risk profile. While some argue that A- and BBB-rated bonds pose a higher risk and thus offer a higher return, the data paints a different picture. The default ratio of investment-grade bonds , which encompasses the AAA to BBB segment, remains low. According to CRISIL, a credit rating agency, BBB-rated bonds witha three-year tenure havethe highest default rate among investment-grade bonds, at just 2.21%. The lower default rates speak to the safety of corporate bonds as an investment alternative to riskier and more volatile asset classes, such as equities, gold, and real estate. The attached CRISIL data gives a detailed breakdown of the default rates for various credit ratings. ET Spotlight India's fixed-income market is also undergoing a technological revolution. Platforms such as the SEBI-regulated OBPP player Jiraaf are making corporate bond investments more accessible than ever. With entry points as low as ₹1,000, even everyday investors can now build fixed-income portfolios that were once the domain of institutions. What is driving the corporate bond market depth Indian corporate balance sheets are at their healthiest, which is giving Indian Inc considerable headroom to borrow. Corporate bonds offer companies more control than bank loans. Strong financials are also allowing firms to raise capital without diluting its stake in the company. Additionally, interest rates are reducing. This has prompted corporates to turn to the bond market to fund expansion while retaining tenure, rates, and repayment cycles. This ease of access is deepening the bond market from the issuer's point of view in FY26. On the other hand, strong demand from foreign portfolio investors (FPIs), as well as institutional and retail demand is driving the supply-side uptick. The FPIs are attracted to the higher returns provided by corporate bonds as G-sec yields decline. Institutional demand is robust, as debt becomes a more attractive asset in the light of equity market volatility. This is also evident in the increasing cash inflow into debt mutual funds over the past months. Equity investments had been the darling of investors for the past decade, with most experts and amateur investors vouching for the growth aspect of the asset class. However, despite market uproar around high returns, the average Nifty50 return over the past decade is 12%. A 12% equity growth barely beats the returns offered by corporate bonds, while posing a much higher risk and volatility. Investors are realising the stability that corporate bonds provide. They are gradually shifting their preference to bonds, focusing on building a well-diversified bond portfolio that includes bonds from different issuers, ratings, and tenures. Investment platforms, such as Jiraaf, are helping investors access the Indian corporate bond market by offering curated bonds with transparent credit scoring, making corporate bonds more accessible to non-institutional investors. In addition to providing curated deals, Jiraaf is also developing tools that simplify bond analysis and make it accessible to all. The first of its kind Bond Analyzer brings analysis to the fixed-income realm, which was previously limited to equities. Looking ahead Despite its growing size and importance, the Indian bond market still lags behind its global peers in terms of retail penetration. The direction is promising. As awareness grows, tools become easier to use, and yields remain attractive, there's reason to believe that 2025 could mark an inflection point for retail entry into corporate debt . For investors seeking to balance risk and return amid equity market volatility, corporate bond investment offers a compelling middle path, blending capital preservation with growth. The views and opinions expressed in the story are independent professional judgment of the experts and we do not take any responsibility for the accuracy of their views. The brand is solely liable for the correctness, reliability of the content and/or compliance of applicable laws. The above is non-editorial content and TIL does not guarantee, vouch or endorse any of it. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified.
Business Recorder
3 days ago
- Business
- Business Recorder
Re0.41 decline
KARACHI: Rupee depreciated further against the US dollar in the inter-bank market as it lost Re0.41 or 0.15% during the previous week. The local unit closed at 284.87, against 284.46 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP). In a key development, Pakistan's current account (C/A) posted a massive surplus of $2.1 billion during the fiscal year (FY) 2024-25, a sharp contrast against $2.07 billion deficit recorded in the FY24, SBP data showed. Pakistan currency hit 21-month low at the international matrix of real effective exchange rate (REER) index, depreciating 1.22% to 96.61 points in June 2025, compared to the prior month of May. Meanwhile, foreign exchange reserves held by the SBP increased by $23 million on a weekly basis, clocking in at $14.53 billion as of July 11, data released during the previous week showed. The country's total liquid foreign reserves stood at $19.96 billion. Net foreign reserves held by commercial banks stood at $5.43 billion. Open-market rates In the open market, the PKR lost 1.02 rupee for buying and 1.10 rupee for selling against USD, closing at 287.37 and 288.60, respectively. Against Euro, the PKR gained 76 paise for buying and 38 paise for selling, closing at 334.92 and 338.27, respectively. Against UAE Dirham, the PKR lost 31 paise for both buying and selling, closing at 78.52 and 79.22, respectively. Against Saudi Riyal, the PKR lost 38 paise for buying and 37 paise for selling, closing at 76.81 and 77.35, respectively. ========================================= Weekly inter-bank market rates for dollar ========================================= Bid Close Rs. 284.87 Offer Close Rs. 285.06 Bid Open Rs. 284.46 Offer Open Rs. 284.65 ========================================= Weekly open-market rates for dollar ========================================= Bid Close Rs. 287.37 Offer Close Rs. 288.00 Bid Open Rs. 286.35 Offer Open Rs. 287.50 ========================================= Copyright Business Recorder, 2025
Mint
3 days ago
- Business
- Mint
Indias forex reserves dip $3.06 bn to $696.67 bn, second straight weekly decline
Mumbai (Maharashtra) [India], July 20 (ANI): India's foreign exchange reserves fell by USD 3.06 billion to USD 696.67 billion for the week ending July 11, marking the second straight week of decline, according to the official data released by the Reserve Bank of India (RBI). In the previous reporting week of July 4, the country's forex reserves witnessed a slip of USD 3.049 billion to USD 699.736 billion. In the week ending July 11, foreign currency assets, which are the major constituent of the forex reserves, fell USD 2.477 billion to USD 588.81 billion, possibly becoming the major reason for the fall in the forex reserves. The Gold reserves, another major component of the forex, again witnessed a sharp fall of USD 498 million to USD 84.348 billion. The country's Special Drawing Rights (SDRs) with the global financial body, the International Monetary Fund (IMF), saw a dip of USD 66 million to USD 18.802 billion during the reporting week of July 11, according to the RBI data. The Reserve Position in the IMF also decreased by USD 24 million, according to the data. Central banks worldwide are increasingly accumulating safe-haven gold in their foreign exchange reserves kitty, and India is no exception. The share of gold maintained by the Reserve Bank of India (RBI) in its foreign exchange reserves has almost doubled since 2021, till recently. In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion, touching an all-time high of USD 704.885 billion at the end of September 2024. India's foreign exchange reserves (Forex) are sufficient to meet 11 months of the country's imports and about 96 per cent of external debt, said Governor Sanjay Malhotra while announcing the outcome of the Monetary Policy Committee (MPC) decisions. The RBI governor expressed confidence, stating that India's external sector is resilient and key external sector vulnerability indicators are improving. Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling. The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep Rupee depreciation. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens. (ANI)
