Weekly Update (15-19Jul, 2024)
Note- 17th Jul,2024 was a holiday on account of Moharram*
- G-sec 10-year Benchmark yield:
6.971%
- G-sec Trade Volume (CCIL Data): Rs 2.82 Lakh Crore
This week witnessed a slight decline in government securities (g-sec) yields. The yield opened at 6.987% and gradually edged down to 6.967% by the week's close. This movement indicates a minor shift in the bond market, which could reflect changing investor sentiment or economic factors influencing demand for government bonds.
- Corporate Bonds OTC Volume (NSE+BSE):
Rs 35,601 Crore
- Nifty: 24,530.90 ( −269.95 (1.09%)
- Sensex: 80,604.65 ( −738.81 (0.91%)
On Friday, benchmark indices tumbled from their record highs due to widespread selling. Analysts attributed the market crash to profit-booking amid a global market correction. The Sensex plummeted 739 points to close at 80,604, while the Nifty dropped 270 points, ending at 24,530. Earlier in the day, the Sensex had reached a record high of 81,587, and the Nifty had hit an all-time peak of 24,854.
India's Economic Resilience and Future Vision: Key Highlights for the Upcoming Union Budget
FY24-25
Impressive Growth: India recorded a 7.2% growth rate in FY 2022-2023, ranking second among G20 nations.
Upcoming Budget: The Union Budget FY24-25, to be presented on July 23 by Finance Minister Nirmala Sitharaman, follows the Modi government's third-term win.
Strategic Objectives: The budget will focus on balancing economic growth with fiscal consolidation, utilizing projected Nominal GDP growth exceeding 12%.
Capital Investment: Significant fiscal resources will be allocated to capital expenditure, addressing infrastructure needs for long-term economic benefits.
Sector Focus: Investments will target renewable energy, urban and rural infrastructure, and digital connectivity to drive innovation and growth.
Deficit Reduction: Aiming for a lower deficit target around 4.9%, the budget seeks to reduce the overall deficit below 7% of GDP, enhancing financial stability.
Note- 17th Jul,2024 was a holiday on account of Moharram*
- G-sec 10-year Benchmark yield:
6.971%
- G-sec Trade Volume (CCIL Data): Rs 2.82 Lakh Crore
This week witnessed a slight decline in government securities (g-sec) yields. The yield opened at 6.987% and gradually edged down to 6.967% by the week's close. This movement indicates a minor shift in the bond market, which could reflect changing investor sentiment or economic factors influencing demand for government bonds.
- Corporate Bonds OTC Volume (NSE+BSE):
Rs 35,601 Crore
- Nifty: 24,530.90 ( −269.95 (1.09%)
- Sensex: 80,604.65 ( −738.81 (0.91%)
On Friday, benchmark indices tumbled from their record highs due to widespread selling. Analysts attributed the market crash to profit-booking amid a global market correction. The Sensex plummeted 739 points to close at 80,604, while the Nifty dropped 270 points, ending at 24,530. Earlier in the day, the Sensex had reached a record high of 81,587, and the Nifty had hit an all-time peak of 24,854.
India's Economic Resilience and Future Vision: Key Highlights for the Upcoming Union Budget
FY24-25
Impressive Growth: India recorded a 7.2% growth rate in FY 2022-2023, ranking second among G20 nations.
Upcoming Budget: The Union Budget FY24-25, to be presented on July 23 by Finance Minister Nirmala Sitharaman, follows the Modi government's third-term win.
Strategic Objectives: The budget will focus on balancing economic growth with fiscal consolidation, utilizing projected Nominal GDP growth exceeding 12%.
Capital Investment: Significant fiscal resources will be allocated to capital expenditure, addressing infrastructure needs for long-term economic benefits.
Sector Focus: Investments will target renewable energy, urban and rural infrastructure, and digital connectivity to drive innovation and growth.
Deficit Reduction: Aiming for a lower deficit target around 4.9%, the budget seeks to reduce the overall deficit below 7% of GDP, enhancing financial stability.
Our honourable FM Mrs. Nirmala Sitharaman presented her 7th budget in the parliament today.
This budget showcases commitment to sustainable growth and a resilient economy!
Source: FM's speech in Parliament
#Budget2024 #UnionBudget #IndianEconomy #Budget #Tax #BondsIndia
This budget showcases commitment to sustainable growth and a resilient economy!
Source: FM's speech in Parliament
#Budget2024 #UnionBudget #IndianEconomy #Budget #Tax #BondsIndia
The 2024 budget is reducing the fiscal deficit and focusing on economic growth.
Learn how these changes are set to impact bond yields and investment strategies. 📊🔍
https://tinyurl.com/Budget2024BI
#IndianBudget2024 #BondMarket #FiscalDeficit #InvestmentStrategies #Bonds #BondsIndia
Learn how these changes are set to impact bond yields and investment strategies. 📊🔍
https://tinyurl.com/Budget2024BI
#IndianBudget2024 #BondMarket #FiscalDeficit #InvestmentStrategies #Bonds #BondsIndia
Weekly Update (22nd -26th, July 2024)
· G-sec 10-year Benchmark Yield: 6.952%
The yield on the 10-year Government Security (G-Sec) experienced a slight decline this week, starting at 6.971% and closing at 6.952%. This minor drop indicates a subtle shift in market conditions and investor sentiment, impacting borrowing costs and interest rate expectations in the economy.
· Corporate Bonds OTC Volume (NSE+BSE):
Rs 42,548 Crore
· Nifty: 24,834.85 (+428.75 (1.76%))
· Sensex: 81,332.72 (+1,292.92 (1.62%)
The Sensex surged 1,292.92 points, or 1.62%, closing at 81,332.72. The Nifty 50 jumped 428.75 points, or 1.76%, to an all-time high of 24,834.85. This significant rise reflects strong investor confidence and market optimism.
Budget 2024: Key Finance Announcements
Capital Gains Taxation:
· Short-term gains on financial assets to be taxed at 20%.
· Long-term gains on all financial and non-financial assets to be taxed at 12.5%.
· Exemption limit for capital gains on financial assets increased to ₹1.25 lakh per year.
Standard Deduction Increase:
· Standard deduction for salaried employees increased from ₹50,000 to ₹75,000.
· Family pension deduction for pensioners increased from ₹15,000 to ₹25,000.
Simplified Tax Regime:
· New tax regime revised:
· Nil tax for ₹0-3 lakh.
· 5% for ₹3-7 lakh.
· 10% for ₹7-10 lakh.
· 15% for ₹10-12 lakh.
· 20% for ₹12-15 lakh.
· 30% for above ₹15 lakh.
Corporate Tax Adjustments:
· Corporate tax rate on foreign companies reduced from 40% to 35%.
· Safe harbour rates introduced for foreign mining companies selling raw diamonds.
Mutual Fund Schemes:
· Profits on schemes with more than 65% debt are treated as short-term and taxed at slab
rates.
· Profits on unlisted bonds and debentures taxed as short-term gains regardless of the holding period.
· Schemes with balanced equity and debt components (neither exceeding 65%) become long-term after 24 months, taxed at 12.5%, with short-term gains taxed at slab rates.
· G-sec 10-year Benchmark Yield: 6.952%
The yield on the 10-year Government Security (G-Sec) experienced a slight decline this week, starting at 6.971% and closing at 6.952%. This minor drop indicates a subtle shift in market conditions and investor sentiment, impacting borrowing costs and interest rate expectations in the economy.
· Corporate Bonds OTC Volume (NSE+BSE):
Rs 42,548 Crore
· Nifty: 24,834.85 (+428.75 (1.76%))
· Sensex: 81,332.72 (+1,292.92 (1.62%)
The Sensex surged 1,292.92 points, or 1.62%, closing at 81,332.72. The Nifty 50 jumped 428.75 points, or 1.76%, to an all-time high of 24,834.85. This significant rise reflects strong investor confidence and market optimism.
Budget 2024: Key Finance Announcements
Capital Gains Taxation:
· Short-term gains on financial assets to be taxed at 20%.
· Long-term gains on all financial and non-financial assets to be taxed at 12.5%.
· Exemption limit for capital gains on financial assets increased to ₹1.25 lakh per year.
Standard Deduction Increase:
· Standard deduction for salaried employees increased from ₹50,000 to ₹75,000.
· Family pension deduction for pensioners increased from ₹15,000 to ₹25,000.
Simplified Tax Regime:
· New tax regime revised:
· Nil tax for ₹0-3 lakh.
· 5% for ₹3-7 lakh.
· 10% for ₹7-10 lakh.
· 15% for ₹10-12 lakh.
· 20% for ₹12-15 lakh.
· 30% for above ₹15 lakh.
Corporate Tax Adjustments:
· Corporate tax rate on foreign companies reduced from 40% to 35%.
· Safe harbour rates introduced for foreign mining companies selling raw diamonds.
Mutual Fund Schemes:
· Profits on schemes with more than 65% debt are treated as short-term and taxed at slab
rates.
· Profits on unlisted bonds and debentures taxed as short-term gains regardless of the holding period.
· Schemes with balanced equity and debt components (neither exceeding 65%) become long-term after 24 months, taxed at 12.5%, with short-term gains taxed at slab rates.
What's next for Sovereign Gold Bonds?
Find out if the Government of India is planning to discontinue them or not! Read here👇
https://tinyurl.com/SGBsExpensiveBI
Source: BondsIndia Research
#SGBs #SovereignGoldBonds #SGB #Budget2024 #UnionBudget #Bonds #BondsIndia
Find out if the Government of India is planning to discontinue them or not! Read here👇
https://tinyurl.com/SGBsExpensiveBI
Source: BondsIndia Research
#SGBs #SovereignGoldBonds #SGB #Budget2024 #UnionBudget #Bonds #BondsIndia
What will be the impact of TDS to be levied on interest received from government bonds and SDLs from 1st Oct ?
Read here!! 👇
https://tinyurl.com/TDSonGsecBI
Source: India Budget, BondsIndia Research
#TDS #Tax #Gsecs #SDLs #GovernmentSecurities #StateDevelopmentLoans #Bonds #BondsIndia
Read here!! 👇
https://tinyurl.com/TDSonGsecBI
Source: India Budget, BondsIndia Research
#TDS #Tax #Gsecs #SDLs #GovernmentSecurities #StateDevelopmentLoans #Bonds #BondsIndia
Still letting your money snooze in a Savings Account?
Wake it up with better options!
Read here: https://tinyurl.com/SavingsorBonds
#SavingsAccount #Interest #Savings #Bonds #Investment #BondsIndia
Wake it up with better options!
Read here: https://tinyurl.com/SavingsorBonds
#SavingsAccount #Interest #Savings #Bonds #Investment #BondsIndia
Weekly Update (29th – 2nd ,August 2024)
· G-sec 10 Year Benchmark Yield:
7.024%
· G-sec Trade Volume (CCIL Data): Rs 4.92 Lakh crore
The G-Sec yield began the week at 6.942% and closed at 7.024%, reflecting market concerns over inflation and expected policy adjustments.
· Corporate Bonds OTC Volume (NSE+BSE): Rs
34,578 Crore
· Nifty: 24,717.70 (−293.20 (1.17%))
· Sensex: 80,981.95 ( −885.59 (1.08%))
Why Markets Fell
1. Global Declines: Weak global data and falling US and Asian markets hit Indian stock indices.
2. Geopolitical Tensions: Escalating tensions, including recent Hamas leaders’ deaths, further impacted sentiment
Impact of Exclusion of Long-Term G-Secs from Fully Accessible Route
3. Exclusion Decision: The RBI, in consultation with the government, has decided to exclude new 14-year and 30-year G-Secs from the Fully Accessible Route (FAR).
4. Market Reaction: This moves, following the inclusion of 27 G-Secs in JP Morgan’s Government Bond Index-Emerging Markets (GBI-EM), may result in reduced market confidence and lower participation.
5. Yield Impact: The exclusion could lead to upward pressure on yields for these securities due to decreased foreign portfolio investment (FPI) demand.
6. Domestic Investor Role: Large domestic investors are expected to absorb the new supply of 14-year and 30-year G-Secs, potentially mitigating some of the yield pressure.
· G-sec 10 Year Benchmark Yield:
7.024%
· G-sec Trade Volume (CCIL Data): Rs 4.92 Lakh crore
The G-Sec yield began the week at 6.942% and closed at 7.024%, reflecting market concerns over inflation and expected policy adjustments.
· Corporate Bonds OTC Volume (NSE+BSE): Rs
34,578 Crore
· Nifty: 24,717.70 (−293.20 (1.17%))
· Sensex: 80,981.95 ( −885.59 (1.08%))
Why Markets Fell
1. Global Declines: Weak global data and falling US and Asian markets hit Indian stock indices.
2. Geopolitical Tensions: Escalating tensions, including recent Hamas leaders’ deaths, further impacted sentiment
Impact of Exclusion of Long-Term G-Secs from Fully Accessible Route
3. Exclusion Decision: The RBI, in consultation with the government, has decided to exclude new 14-year and 30-year G-Secs from the Fully Accessible Route (FAR).
4. Market Reaction: This moves, following the inclusion of 27 G-Secs in JP Morgan’s Government Bond Index-Emerging Markets (GBI-EM), may result in reduced market confidence and lower participation.
5. Yield Impact: The exclusion could lead to upward pressure on yields for these securities due to decreased foreign portfolio investment (FPI) demand.
6. Domestic Investor Role: Large domestic investors are expected to absorb the new supply of 14-year and 30-year G-Secs, potentially mitigating some of the yield pressure.
Will the Repo Rate remain unchanged 9th time in a row ?
Source: BondsIndia Research
#MPCmeeting #MonetaryPolicyCommittee #MPC #RepoRate #Inflation #PolicyRate #BondsIndia
Source: BondsIndia Research
#MPCmeeting #MonetaryPolicyCommittee #MPC #RepoRate #Inflation #PolicyRate #BondsIndia
👍1
Repo rate remains unchanged for the 9th consecutive time, primarily due to the inflation and soaring food prices.
Source: MPC Press Release
#MonetaryPolicyCommittee #MPCmeeting #RepoRate #Inflation #RBI #BondsIndia
Source: MPC Press Release
#MonetaryPolicyCommittee #MPCmeeting #RepoRate #Inflation #RBI #BondsIndia
With surplus liquidity at Rs 2.78 trillion, will OMO sales be the next step?
Tap to see what’s ahead!👇
https://tinyurl.com/OMOsalesBI
Source: Business standard , BondsIndia Research
#OMOsales #Liquidity #RBI #MPC #MonetaryPolicyCommittee #BondsIndia
Tap to see what’s ahead!👇
https://tinyurl.com/OMOsalesBI
Source: Business standard , BondsIndia Research
#OMOsales #Liquidity #RBI #MPC #MonetaryPolicyCommittee #BondsIndia
Retail inflation in India dipped below the RBI's target in July, marking a significant economic shift! 📰
source: Indiatoday, BondsIndia research
#Inflation #RetailInflation #IndianEconomy #RBI #Economy #FoodInflation #BondsIndia
source: Indiatoday, BondsIndia research
#Inflation #RetailInflation #IndianEconomy #RBI #Economy #FoodInflation #BondsIndia
Celebrating the spirit of freedom and the strength of a nation that keeps rising!✨
Here’s to a future where dreams soar as high as our tricolor.
Jai Hind!
#77thIndependenceDay #IndependenceDay2024 #15August #BondsIndia
Here’s to a future where dreams soar as high as our tricolor.
Jai Hind!
#77thIndependenceDay #IndependenceDay2024 #15August #BondsIndia
SEBI's eased norms revive India's perpetual bond market, boosting bank capital and investor confidence👇
https://tinyurl.com/PerpetualBondsBI
Source: Business Standard, BondsIndia Research
#PerpetualBonds #SEBI #Bonds #BondsIndia
https://tinyurl.com/PerpetualBondsBI
Source: Business Standard, BondsIndia Research
#PerpetualBonds #SEBI #Bonds #BondsIndia
There’s no bond stronger than the one shared by siblings. Wishing you a very happy Rakshabandhan!✨
#Rakshabandhan2024 #Rakhi #Siblings #Bonds #BondsIndia
#Rakshabandhan2024 #Rakhi #Siblings #Bonds #BondsIndia
SEBI has proposed a new liquidity window facility for bond investors, aiming to enhance liquidity in the corporate bond market.
This facility will be available through the stock exchange mechanism and is especially beneficial for retail investors.
Source: BondsIndia research, SEBI draft circular
#SEBI #retailinvestors #Liquidity #Bonds #sellbonds #BondsIndia
This facility will be available through the stock exchange mechanism and is especially beneficial for retail investors.
Source: BondsIndia research, SEBI draft circular
#SEBI #retailinvestors #Liquidity #Bonds #sellbonds #BondsIndia
Is it time to say goodbye to our beloved Sovereign Gold Bonds? Read here👇
While investors have more than doubled their #profits from #SGBs , government is rethinking their choice of issuing these bonds in the first place!
Why were SGBs introduced?
➡️SGBs were aimed to reduce India's current account deficit by offering an alternative to physical gold with a fixed 2.5% interest rate.
The strategy worked initially as long as gold prices remained stable, allowing the government to raise funds cheaply compared to issuing government bonds. Gold prices surged with the onset of COVID 19, doubling from Rs 35,000 per 10 grams in 2019 to nearly Rs 75,000 by 2024, increasing the government's liabilities on SGBs.
Source: Business today, Livemint, Bondsindia research
#SovereignGoldBonds #SGB #GoldBonds #Investment #Govtbonds #Bonds #BondsIndia
While investors have more than doubled their #profits from #SGBs , government is rethinking their choice of issuing these bonds in the first place!
Why were SGBs introduced?
➡️SGBs were aimed to reduce India's current account deficit by offering an alternative to physical gold with a fixed 2.5% interest rate.
The strategy worked initially as long as gold prices remained stable, allowing the government to raise funds cheaply compared to issuing government bonds. Gold prices surged with the onset of COVID 19, doubling from Rs 35,000 per 10 grams in 2019 to nearly Rs 75,000 by 2024, increasing the government's liabilities on SGBs.
Source: Business today, Livemint, Bondsindia research
#SovereignGoldBonds #SGB #GoldBonds #Investment #Govtbonds #Bonds #BondsIndia
Is Now the Right Time to Redeem Your Sovereign Gold Bonds?
Source: Moneycontrol, Bondsindia research
#SGBs #SovereignGoldBonds #GoldBonds #RBI #Redeem #Bonds #BondsIndia
Source: Moneycontrol, Bondsindia research
#SGBs #SovereignGoldBonds #GoldBonds #RBI #Redeem #Bonds #BondsIndia