The Securities and Exchange Board of India (Sebi) on Monday relaxed the norms for valuing perpetual bonds. The norms, which had sought to value banks' deemed residual maturity of Basel III additional tier 1 (AT1) bonds as 100-year debt from April 1, were strongly opposed by the finance ministry. In a statement released on Monday, the regulator said the maturity would be 10 years until March 31, 2022, and would be increased to 20 and 30 years over the subsequent six-month period.
Invest in liquid funds if you have a horizon of three months, ultra-short-term for six months, and low-duration funds for one year.
'Indian macro conditions have never been better, and many businesses will safely compound earnings over the next five years.'
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In New York market, the dollar lost ground against most major rivals on last Friday amid mixed US data on industrial production and consumer sentiment.
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Most Asian currencies weakened versus the dollar with the Thai baht and Philipine peso sliding on disappointing economic data.
Exposure to debt funds and gold is essential even if current returns from these asset classes are low, suggests Sanjay Kumar Singh.
Foreign investors have bought around $2.4 billion in both debt and equity so far in October, pushing the total inflows to nearly $36 billion so far in the year.
The previous bout of Fed withdrawal fears had threatened to spark a crisis of confidence in India -- sending the rupee to a record low of 68.85 in late August and leading to steep falls in bonds and stocks.
With a 'yes' vote, there is a more foreseeable outcome, while a 'no' could result in greater uncertainty, for which retail investors may not have the appetite.
Analysts expect RBI to restore 100-bp corridor in Tuesday's policy review.
In New York market, the dollar fell further against the euro yesterday after minutes from the Federal Reserve's March meeting detailed risks that could keep interest rates depressed even after the first rate hike.
Domestic shares and other global markets rose on upbeat trade data from China earlier in the day and after a US House deal extending the federal borrowing authority.
Experts believe FPIs will keep a close watch on coronavirus pandemic, its spread and likely impact on the economy while making decisions about investment into India.
You also avoid capital gains tax during redemption in case the gold price is higher, making them tax efficient.
Investor mistakes are just too many and to me everything looks major. P V Subramanyam tells a few that bother and bug him as an investment advisor.
'It is going to be a tough balance for the RBI to manage economic stability and ensure smooth government borrowing.'
Be mindful that each instrument is governed by a different set of gifting rules and is also taxed differently.
In New York market, the dollar fell against the Japanese yen yesterday, taking cues from declines in US stocks.
Bank Nifty pared all its intraday gains to end over 1% lower led by losses in BoB, ICICI Bank, Axis Bank and Bank of India
'Both IIP and CPI inflation numbers are showing a huge disconnect from the leading indicators.'
Banks are allowed to invest up to 10 per cent of the paid-up or unit capital in Category-I or Category-II Alternative Investment Funds
'We will likely be buffeted by tailwinds from the global economy, geopolitical shifts and robust domestic demand.'
In the last few months, the 10-year G-Sec has been gyrating sharply and has crossed the 9-per cent-yield mark four times.
Total assets under management (AUM) for September stood at Rs 20.4 lakh crore compared with Rs 20.6 lakh crore at the end of August.
Market recovery on the cards in 2014 as investors are likely to chase higher yields
With some variations, all regional political formations, whether in power presently or out of it, share some common features: Tight family control of the political apparatus, key members in elected or appointed positions, obvious wealth but not quite known sources of income, and family factionalism, sometimes open and bitter, notes Shreekant Sambrani.
The Supreme Court on Friday termed as "unfortunate" and rued the "new trend" of maligning judges by governments if judicial pronouncements are not as per their liking.
The rupee had gained five paise to close at 63.25 against the dollar in on Monday's trade on fresh selling of the US currency by exporters amid bullish stocks.
Inflation pegs down currency value, re-allocates resources, reduces potential economic growth and leads to the attrition of gross domestic savings.
The partially convertible rupee closed at 61.31/32 per dollar, unchanged from its Tuesday close.
These schemes are expected to perform in the next 2-3 years.
The bond market is not in a mood to reason with the Reserve Bank of India (RBI) on keeping yields low. The 10-year bond yields continued to rise for the fourth straight session to close at 6.202 per cent from its previous close of 6.135 per cent. The yield was at 6 per cent a week ago. The RBI wants the yields to remain at 6 per cent, but bond dealers say the central bank will have to step up its bond-buying programme.
Forex dealers said besides the dollar's gains against other currencies overseas, increased demand from importers for the American unit put pressure on the rupee but a higher opening in the domestic equity market capped losses.
Indian bond yields may not spike if the government opts to increase spending when it unveils its annual budget in late February.
The Centre's decision to grant 10 per cent quota for the EWS category in admissions and jobs violates the basic structure of the Constitution on multiple counts including that it breaches the 50 per cent cap on reservation, the Supreme Court was told on Tuesday.
As emotional beings, humans tend to be their own worst enemy when it comes to making investment decisions, says Holly Cook
The RBI on Friday said it will give banks Rs 1 trillion through targeted long-term repo operations (TLTROs), of up to three-year maturity, to deploy in "investment-grade corporate bonds, commercial paper, and non-convertible debentures over and above the outstanding level of their investments in these bonds as of March 27, 2020."
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
The market last tumbled 10% or more in December 2016 following demonetisation. The decline was followed by a sharp rebound. This time the chances of such a v-shaped recovery are less.
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