Latest news with #SmartTalk
Time of India
2 days ago
- Business
- Time of India
NSE, BSE issue advisory to bond investors. Here are 10 things to know
Stock exchanges BSE and NSE on Friday issued an advisory to investors dealing with Online Bond Platform Providers (OBPPs) to explain to them the underlying features of bonds, risks and costs associated with such investments, in order to help them make informed decisions. In a joint press release issued today, the exchanges said that it is crucial to understand the concepts of the bond markets including the factors affecting the yield of the bonds. The release was issued amid a growing popularity of online bond platforms and easier access to investors to various fixed-income instruments. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Here's Why This 1 Day Garage Floor Coating Is Sweeping Texas Garage Flooring USA Learn More Undo 10 things to know: 1) Yield to Maturity (YTM): One of the most important concepts to understand is the YTM, which represents the total annualized return an investor can expect if the bond is held until its maturity. YTM takes into account the bond's current market price, its periodic coupon payments and the time remaining until maturity. Bonds Corner Powered By The case for fixed-income investments: What Gen-Z investors should know Fixed-income investments offer Gen-Z investors stability and predictable returns, complementing a diversified portfolio. Experts advise understanding risk, utilizing mutual funds, and timing investments based on interest rate cycles. With increased accessibility through platforms like Bond Central, young investors can leverage fixed income for financial growth, balancing risk with disciplined investing through SIPs to achieve long-term security. 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 ETMarkets Smart Talk: Fixed income still has a place in FY26 - 15–20% allocation ideal for most, 70% for seniors, says Aamar Deo Singh Browse all Bonds News with 2) No guaranteed returns: It is important to note that YTM is not a guaranteed return. It can fluctuate based on factors such as changes in market interest rates, liquidity conditions, time to maturity, and the creditworthiness of the issuer. Live Events 3) If the bond is sold before maturity, the actual return may differ significantly from the indicated YTM. 4) Generally, when a bond's price is below its face value, its YTM is higher than its coupon rate, and vice versa. 5) The coupon rate of a bond refers to the fixed annual interest paid by the issuer, calculated as a percentage of the bond's face value. This provides regular income to investors, usually on a semi-annual or annual basis. 6) Risks: The payments by issuers are not risk-free. They are dependent on the financial health and credit reliability of the issuer. Any delay or default in payments can adversely affect investor returns. 7) Relationship between bond prices and yields: Bond prices and yields move in opposite directions. When interest rates in the market rise, bond prices fall, leading to higher yields, and when interest rates fall, bond prices increase, lowering the yield. This inverse relationship is fundamental to assessing interest rate risk and understanding potential price movements in the secondary market. 8) Impact of brokerage: Brokerage reversal or zero brokerage can have a direct impact on the YTM by lowering the overall cost of investment, thereby slightly enhancing the effective return. The final return should always be assessed after considering all associated costs, fees, and applicable taxes. 9) Before investing through any online bond platform, investors must take into account several important factors such as checking the bond's credit rating, the issuer's track record in timely repayments, the liquidity of the instrument, settlement timelines, and the tax implications of the investment. 10) It is crucial to verify that the platform is a SEBI-registered Online Bond Platform Provider (OBPP). Investors should carefully read platform disclaimers, understand the terms and conditions, and ensure that transactions are carried out through properly regulated and secure systems.
Time of India
2 days ago
- Business
- Time of India
JPMorgan considers cutting China, India share in EM Bond Index
JPMorgan Chase & Co. is considering cutting the weight of the largest bond issuers in its flagship emerging-market index — including China and India — as it seeks to reflect a broader range of developing-nation debt. The Wall Street bank has been soliciting feedback from clients on amendments to its GBI-EM Global Diversified index, the benchmark for local-currency developing-nation debt that's tracked by more than $200 billion of funds, documents seen by Bloomberg show. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cheras: SUV Sale, Click Here to See Prices Luxury SUV Deals | Search Ads Search Now Undo One of the proposals envisages lowering a cap on individual countries from 10% to 8.5%, a move that could increase the average yield of the benchmark as nations with higher borrowing costs gain a bigger presence, according to the documents. While a loftier yield implies greater risks, it also means higher potential returns. Bonds Corner Powered By JPMorgan considers cutting China, India share in EM Bond Index JPMorgan is considering lowering the country cap in its GBI-EM index from 10% to 8.5%, potentially reducing China and India's weight while boosting smaller emerging markets. The proposal aims to diversify exposure and enhance index yield. Sebi's bond central to deepen corporate bond market, improve price discovery: Vineet Agrawal ETMarkets Smart Talk: Fixed income still has a place in FY26 - 15–20% allocation ideal for most, 70% for seniors, says Aamar Deo Singh India's Rs 50 lakh crore bond market grows, but retail investors still sit on the sidelines: Experts Adani Enterprises' Rs 500-crore NCD issue oversubscribed 3x Browse all Bonds News with The amendments are preliminary proposals, the documents show, and are not guaranteed to be adopted. In a consultation last year, JPMorgan initially floated a methodology change which would have resulted in China's index share falling to 6%, only to later withdraw the proposal. If the latest amendments are implemented, however, the weighting reductions would affect the largest bond sellers in emerging markets, including Indonesia, Mexico and Malaysia, as well as China and India, according to the documents. Brazil, South Africa, Poland and Colombia would be among the biggest beneficiaries, they show. Live Events Frontier Gauge JPMorgan is also previewing a new frontier local markets index, with $344 billion of debt across 521 bonds eligible, according to the documents. The new frontier gauge would cover 21 markets across 20 currencies. A spokesperson for JPMorgan declined to comment when contacted by Bloomberg. JPMorgan's index is the main benchmark for developing-nation debt funds and changes to its composition can affect global investment flows . Chinese bonds were phased into JPMorgan's indexes in 2020 while Indian debt was added last year. Bloomberg LP, the parent company of Bloomberg News, also offers index products for various asset classes through Bloomberg Index Services Ltd.
Time of India
6 days ago
- Business
- Time of India
Stable Indian government bond yields push investors towards more attractive corporate debt
Indian mutual funds and insurance companies are shifting towards an accrual strategy to capitalise on higher corporate bond yields , as government bond yields are expected to remain largely stable, investors told Reuters on Wednesday. An accrual strategy focuses on earning returns primarily through interest payments, rather than through trading or capital gains. Fund managers are increasingly favouring shorter-duration bonds when yields are near the upper end of the range. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Dubai villas | search ads Get Deals Undo The LSEG benchmark AAA-rated two-year and three-year corporate bond yields stood at 6.56% and 6.70%, respectively, on Monday. Bonds Corner Powered By Stable Indian government bond yields push investors towards more attractive corporate debt Indian mutual funds and insurance firms are increasingly adopting an accrual strategy, drawn by higher corporate bond yields amidst stable government bond yields. Mutual funds favor shorter-duration bonds, while insurance companies show interest in longer-duration bonds, specifically the five-year to 10-year part of the curve. Rupee bond binge by Indian firms poised to slow after record run Bond market awakening in 2025: India catching up with global capital flows India bond traders eye US data, RBI liquidity operation for cues ETMarkets Smart Talk - FPI outflows from Indian bonds likely tactical profit booking, says Puneet Pal of PGIM India AMC Browse all Bonds News with The spread between corporate and government bond yields in these two tenors has risen around 20-30 basis points over the past month to 85 bps. "As long as there is no danger of policy reversing, the two-three-year bonds will respond to local liquidity ... so, we have already reallocated funds from the long bonds to the 2-3-year corporate bonds," said Sandeep Bagla, CEO at Trust Mutual Fund, which manages overall assets worth around 35 billion rupees ($408.00 million). Live Events The uptick in corporate bond yields has surpassed gains in government bonds since the Reserve Bank of India shifted its monetary policy stance and began withdrawing liquidity from the banking system. "In the context of present market conditions and macro-economic environment, we are cutting duration... I am positive on the shorter end as liquidity is likely to flow there," said Killol Pandya, senior fund manager for debt at JM Financial Asset Management, which manages debt assets worth about 38 billion rupees. "We have scaled back duration in our dynamic bond fund too," he said, noting that the company had gone from an exclusively government bond approach to strategically moving some funds to corporate bonds, towards the accrual system. While mutual funds are concentrating on the shorter end of the corporate bond yield curve, insurance companies are showing interest in longer-duration bonds. "We believe currently the most attractive part of the market is corporate bonds, especially the five-year to 10-year part of the curve," said Rahul Bhuskute, CIO at Bharti AXA Life Insurance. The spread between five-year and 10-year corporate bond yields and government bond yields remains in the range of 75-85 bps. ($1 = 85.7850 Indian rupees)
Economic Times
01-07-2025
- Business
- Economic Times
Crude, monsoon hold the key to market direction in H2 2025: Bay Capital's Nikunj Doshi
Nikunj Doshi of Bay Capital anticipates that crude oil prices and monsoon progress will significantly influence Indian equities in the second half of 2025. He highlights opportunities in consumption, digital-first businesses, and financial services. Doshi believes India is becoming a core portfolio allocation for global funds due to its strong growth and macro stability. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads As Indian equities navigate through global volatility and domestic shifts, Nikunj Doshi, Managing Partner and CIO-PMS at Bay Capital Investment Advisors, shares his insights on what lies ahead for investors in the second half of an exclusive conversation with ETMarkets Smart Talk, Doshi highlights how two key domestic variables—crude oil prices and the progress of the monsoon—will be pivotal in shaping market sentiment and corporate earnings He also sheds light on emerging sectoral opportunities, the evolving role of India in global portfolios, and why patient investors should stay focused despite short-term noise. Edited Excerpts –A) Geopolitical concerns do carry an economic impact — particularly in terms of supply chain disruptions, commodity price fluctuations, and global risk-off whether these concerns will leave a lasting impact on investor sentiment depends on the scale, duration, and economic implications of the we've seen that events like the Gulf War, the Southeast Asian crisis, 9/11, the Global Financial Crisis, or even the Covid-19 pandemic have triggered sharp short-term corrections, but they eventually opened up some of the best investment opportunities for long-term caused by such crises often creates value dislocations in quality businesses, which can be capitalised on with a patient, long-term view.A) Looking ahead to H2 2025, the outlook for Indian equities will hinge primarily on two domestic variables — crude oil prices and the progress of the factors have a direct bearing on inflation, rural consumption, and macroeconomic stability. If crude remains within manageable levels and we have a normal monsoon, then business sentiment should stay that scenario, we foresee an improvement in demand conditions, further margin stabilisation, and consequently, an upward revision in corporate earnings for FY27. That would likely lend strong support to equity markets over the medium term.A) Besides defence (which we don't invest) we see opportunities in consumption, digital first businesses and financial services sectors.A) Crude oil remains a critical macro variable for India due to our import dependency. A $10 increase per barrel typically raises the current account deficit (CAD) by 0.3% of said, India's current external position is relatively comfortable, and any spike in crude may not derail the macro outlook unless it's prolonged or very ongoing tariff negotiations with the US conclude smoothly, and global trade channels remain functional, the economy should be able to absorb moderate crude increases without significant pressure on earnings or GDP growth.A) As mentioned earlier we see opportunities in consumption, digital first businesses and financial services sectors. Our focus is on business leadership, large TAM and corporate governance besides the financial overall market valuations do look high, but there are many stocks available at attractive valuations if one looks bottom up.A) We see India becoming core portfolio allocation for global funds rather than being clubbed with other emerging markets. India is now the fourth largest economy with much better growth outlook, we this happening sooner than India now being the fourth-largest economy and delivering consistent growth, the country stands out for its macro stability, reform momentum, and consumption-led growth model.A) Asset allocation call depends on individual priorities. For first-time investors, we recommend starting with mutual funds — either via SIPs or STPs — to average out across asset classes like equity, debt, and gold is also advisable depending on one's financial milestones and income stability.A) The RBI's decision to front-load a 50 basis points cut, along with efforts to infuse liquidity, was a prudent move given the evolving global and domestic macro backdrop. Alongside the tax reliefs announced in the previous Union Budget and a cooling inflation trajectory, these policy measures should help improve household sentiment and consumption demand in the near RBI will likely now adopt a wait-and-watch approach to assess how businesses and consumers respond to these monetary and fiscal measures before making further rate decisions.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Economic Times
17-06-2025
- Business
- Economic Times
Trideep Bhattacharya on where he sees value and sectors that may see outperformance in future
Trideep Bhattacharya, Chief Investment Officer-Equities, Edelweiss MF, says India's consumption is expected to rebound in the second half of FY26. Factors like easing inflation, strong monsoons, and salary hikes will boost rural demand. Government spending on infrastructure, defence, and railways is also set to rise. IT services are a tactical bet due to reasonable expectations and improving macro a trade deal with US materializes by early July, IT services and chemicals are poised for relative outperformance. A low-probability, high-tariff scenario could severely impact the US and global economic growth, though markets aren't currently pricing in this risk. ADVERTISEMENT The way macroeconomics is shaping up, if you look at the global headwinds, whether it is in terms of the geopolitical tensions or the rising crude, how do you see India vis-à-vis the rest of the world because as far as India is concerned, the good part has been priced in. In the near term, do you see some bit of consolidation happening and going forward, how do you see the Indian markets play out? Trideep Bhattacharya: There are two or three parts to your question. First of all, amidst global volatility overall, when you look at the maximum amount of volatility or uncertainty, it was the beginning of the year when we did not know how India is going to be affected, what Trump's plans would have been, and also earnings were weak. ETMarkets Smart Talk | 2H2025 market returns may moderate, but India's long-term story intact: Abhiram Eleswarapu So, from that perspective, at the moment the macros are a little less volatile than where they were and the market rise seems to factor that in. But as you rightly pointed out, the markets have rallied close to September 24 highs and one of our hypotheses on the markets is that earnings-wise we would probably see earnings come back in the second half of FY26. So, over the next few months, markets being very close to September 24 highs, we would expect a bit of time correction in the markets to happen given that markets are in and around fair value. With regards to India, on a relative basis, we score quite well relative to other emerging market nations and also globally because A) our growth is the strongest and B) the texture of the growth is more domestic dependent than export dependent in circumstances where almost all the global economies are looking to find, to make in their own country a version of whatever goods and services they can and put tariffs on others. This particular growth metric where growth is driven by domestic earnings scores quite well and hence relatively, we would continue to be favourites of FIIs over a period of time, like we have seen since the beginning of this year. In terms of your sector preferences, oil and gas is one space where you are not very bullish in terms of your allocations as well. But oil is the biggest talking point right now with respect to what has been happening with Iran and Israel. Back home in terms of stock preferences, how do you see the space evolving? Yes, oil is giving jitters in the short term. How do you see the movement in the oil impacting various sectors and within the oil and gas space, there are subsegments as well. Are you bullish on any particular theme if at all? Trideep Bhattacharya: At the end of the day, from the beginning of this year till now, crude oil has come down from $85 to hit a bottom of $65 and now we are hovering between around $70. Net-net, so far, oil has corrected and that is positive for India economy on a net-net basis. Yes, recently we have seen a bit of a spike, but I would call that rise as being more in the range of $65-75 is where I would expect to remain. ADVERTISEMENT On the outside, if it touches or crosses $90 per barrel, I would be worried. But the chances of that happening are fairly limited given that there would be shale gas and also OPEC production coming to rescue. Second, we are a big importer of oil as an economy, and in that context, oil prices going up can cause a little of volatility but as long as it is within the range of $65-75, we do not see it as too much of a concern from a fundamental standpoint. Third, in the context of where we are placed within oil, we are more positive upstream over the last couple of months since the oil price has corrected quite meaningfully to $65 and that has helped us during this period of oil price rise. But net-net, compared to other sectors, we would bet on that part of the economy which uses oil as an input and churns out output because quite a few of the incentives being doled out either by the macro conditions or by the government act in their favour like consumption. So, we would be betting on the other side. But within oil and gas as a sector, we would rely on stock selection to carry us through. ADVERTISEMENT Talk to us about the other pockets where you see value. The common consensus, of course, is in favour of the financial, especially the NBFC space and as I can see, you are positive on NBFCs as well. But besides that ,talk to us about the sectors where you see value. Trideep Bhattacharya: If I were to look at two or three things which have happened in the context of India which are genuinely positive and play out over the back half of this year, one is basically a resumption of consumption based recovery and there certainly we do see pockets where a rebound is imminent. Very clearly one is crude oil and we discussed it at length as to the implications of the same. But secondly, inflation as you were talking earlier in the show, has come off quite meaningfully by 100 basis points and more that certainly is a boost for the rural economy. Also, monsoons being 6% higher than long period average also will act as a boom for rural consumption. ADVERTISEMENT Finally, in the budget, the honourable finance minister effectively gave a salary hike of 5% to 7% which will play out this festive season and onwards. Net-net, if you look at all the catalysts that are lined up in front of us, I would say consumption as a sector would see quite a few things going for them as we go toward the second half of FY26. The second theme that we like in the context of current times is resumption of government spending. Almost one-and-a-half years we spent where hardly any economic decision-making really happened. But since the beginning of this year, we have seen a meaningful amount of contracts being signed and more likely to come through in the areas of infrastructure, defence, railways, and the likes of it, which will play out in the form of earnings as we start from the second half of FY26 onwards. So, these are two themes which would carry on the earnings battle in the second half of FY26 which is what we are positive on. Those would be the sectors that are good to go. The third area is IT services. It is more tactical in nature, more because expectations are very reasonable at the moment. While earnings will be a little bit languishing, a year from now, earnings outlook will start to look better and macro conditions will ease out. So, these three are the areas that we are betting on in our portfolios. ADVERTISEMENT But other than that, apart from earnings, the other biggest talking point is what will happen to the trade talks and where is India placed with respect to the negotiations that are already underway? Is it time to once again look out for some of those globally linked sectors like pharma, chemical, or some of the other sectors where India has good exposure? Trideep Bhattacharya: IT services and chemicals would be two such pockets where from a near-term perspective we would be relatively more positive assuming a deal gets done. Now, in all honesty, in what shape and form the deal will get done is unknowable. But what we know is that business conditions tend to take precedence particularly in an economy like that of the US and we would probably have the first contours of a deal as we head towards the first deadline which is July 1st week. Assuming that happens, the two sectors that we like would probably kind of do better than others on a relative basis. I would also like to point out the other side which is a low probability event, but in case the tariff situation is kind of really the area where US kind of wants to implement high tariffs for the rest of the globe, then the biggest impact would be negatively on United States and globally we would be staring at fairly dire conditions from an economic growth standpoint towards the second half of this year. However, that is a three-sigma event that is a risk which I do not think at the moment markets are factoring in. At the same time, it is a low probability event and hopefully better sense prevails in the first week of July and that is what we are hoping for. We are bracing up for some sort of volatility in and around that date to see this through. (You can now subscribe to our ETMarkets WhatsApp channel)
