On August 14S&P Global upgraded India's long-term sovereign credit ratings to 'BBB' for the first time since 2007, citing economic resilience and fiscal consolidation
Local bond yields trending lower is a disincentive for foreign investors as it narrows the spread between Indian and home market bonds, and usually leads to outflows
Rate cuts on the horizon, a likely friendly budget and finally the expected money flow from foreign investors is keeping the bond party alive
The yield on 10-year benchmark 7.18 percent 2033 fell to 7.0136 percent today, from 7.163 percent on September 21, 2023.
The momentum of buying, however, slowed down and FPIs turned sellers during the two trading days ahead of the US Federal Reserve meeting on July 26.
Apart from global monetary tightening, volatile crude, rising commodity prices along with Russia and Ukraine conflict led to an exodus of foreign money in 2022.
We see an upside bias in markets in the near term as there is significant potential for further weakness in the dollar
Assocham Secretary General D S Rawat said at the present juncture, global equity investors have been showing quite a bit of interest in the Indian market.
The new regulations, which have come into effect today, replaces the existing Sebi regulations for Foreign Institutional Investors (FIIs) and the new class of investors, FPIs, would encompass all FIIs, their sub-accounts and Qualified Foreign Investors (QFIs).