0% return! Debt mutual fund investors in for a shock in FY22 businesstoday.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstoday.in Daily Mail and Mail on Sunday newspapers.
RBIâs policy stance very balanced: India Inc. After the RBI announced that it is maintaining the status quo with regard to its policy stance, India Inc. has reacted very positively to the developments. Here are some of the reactions.
Apr 7, 2021
Despite a pause in rates, RBI s latest policy does enough to boost liquidity and revive growth engines.
Image: Sanjay Rawat
The Reserve Bank of India today announced its monetary policy, wherein it kept the repo rate unchanged at 4%, and retained its accommodative policy stance.
India Inc. has reacted very positively to the developments. Here are a few of such reactions.
FPI outflows from Indian corporate bonds at a record ₹36,952 cr in FY21
April 07, 2021
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Foreign portfolio investors (FPIs) have turned away from Indian corporate bonds in a big way in FY21. Amid risk aversion towards NBFC debt instruments and in search for benchmarked fixed income products, FPIs utilisation in Indian corporate debts more than halved to 23.14 per cent in March 2021, from 54.49 per cent for the same period last year.
“The cost of hedging INR in the forward market is quite formidable. Quite a few FPIs hedge their currency risk when they buy India bonds as they seek carry via fixed income. Also, US Treasury yields have been rising gradually which offers FPIs dollar exposure without need to hedge. Hence, we have seen general disinterest in buying India bonds,” said Lakshmi Iyer, Chief Investment Officer (Debt) & Head Products, Kotak Mahindra Asset Management Company.
RBI s G-SAP 1.0 masterstroke: Where should debt mutual fund investors invest?
The RBI will purchase government securities worth Rs 1 lakh crore under GSAP 1.0 in Q1FY22. It had purchased bonds worth around Rs 3.13 lakh crore from the secondary market in FY21.
The RBI also announced its intention to expand its Variable Rate Reverse Repo auction program in FY22.
In its first monetary policy review for financial year 2021-22, RBI kept the key lending rates unchanged amid a surge in COVID-19 cases across the country. The central bank s decision was on expected lines. It is a positive policy for bond markets, say debt mutual fund managers. They believe the surprise introduction of G-SAP 1.0, a secondary market G-Sec acquisition programme, is a great move to contain the volatile long-term bond yields.
RBI: RBI G-Sec auction falters fourth time - The Economic Times indiatimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indiatimes.com Daily Mail and Mail on Sunday newspapers.