RBI is expected to intervene decisively, especially in the short end of the curve to support bond prices as the government and corporates are expected to borrow in this segment. RBI’s main objective is to foster economic growth over the coming financial year while keeping a close watch on inflation. RBI has stated its intention to ensure orderly evolution of the G-Sec curve, reduce volatility to ensure a stable rate structure and is expected to support the government borrowing program.
RBI Interventions:
• RBI bought almost Rs 27,000 crores worth of 10year G-Sec and canceled an auction during the month. With this buying, RBI now holds more than 65% of 10-year papers.
• RBI has bought Rs 1.73 Lakhs crores worth of G-Secs, of which Rs 1.20 Lakhs were through G-SAP (Government Securities Acquisition Program), Rs 43,000 crores in secondary market and Rs 10,000 crores in Operation Twist.
• RBI has also changed the primary auction up to 14 years to uniform price auction from multiple price auction. In uniform price auction, all the successful bidders will get the cut-off price unlike the multiple price auction, in which successful bidders got at the price at which they had bid in the auction. This is expected to lower the borrowing cost of the government in a rising interest rate scenario.
• In the MPC, governor announced GSAP-2 worth Rs 1.2 trillion for the July-Sep quarter which was expected. Adding Rs. 10,000 crores of state loans in GSAP-1 gave expectations that RBI might add another Rs.1020,000 crores of SDL buy back in GSAP-2 as well.
هذه القصة مأخوذة من طبعة August 2021 من Investors India.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة August 2021 من Investors India.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Indians are Developing Weak Bones
In India, 1 out of 8 males and 1 out of 3 females suffer from osteoporosis, making India one of the largest affected countries in the world.
"The strategy behind the Tata India Innovation Fund centers on identifying companies that are driving transformative or incremental changes through innovation"
Yes, we certainly believe innovation is a powerful theme with immense potential for the coming years, and we are excited to bring it to our investors.
What is Hybrid Mutual Fund?
Hybrid Mutual Fund is a combination of more than one type of fund. While they invest in shares of companies listed on the exchange, like equity funds.
Should you invest in dynamic bond funds?
Dynamic bond funds have delivered a category average return of 8.68 per cent over the past year, making them the fourth best-performing category, following long-duration funds, constant maturity gilt funds, and gilt funds. With interest rate cuts yet to begin, these funds remain a viable option for investors seeking to benefit from possible rate reductions.
The Multicap Solution to India's MultiDimensional Growth
India is entering a transformative era of economic growth, backed by a unique combination of demographic strength, infrastructure development, and rising global prominence.
The Long-Term Benefit of Investing in Children's Future
A child is the most treasured part of any parent's life, and naturally, we want to give them the best of what the world has to offer. This often means not only ensuring we can meet their needs but also nurturing them to pursue their unique aspirations. Each child has their own dreams and challenges, making the early years critical as they lay the foundation for a healthy and fulfilling future.
ASK THE EXPERT
Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida
How to Naturally Reverse Fatty Liver Disease
The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?
