India bond yields seen steady, Aug CPI data eyed
时间:2024-09-29 02:25:27 阅读(143)
Indian government bond yields are likely to trade largely unchanged in early session on Tuesday before an auction of state debt and release of retail inflation data later in the day.
The new 10-year benchmark 7.18% 2033 bond yield is likely to be in a 7.20%-7.22% range on Tuesday after ending the previous session at 7.2135%, a trader with a private bank said.
India’s retail inflation data is due after market hours on Tuesday, while U.S. inflation data is due on Wednesday.
India’s headline retail inflation rate likely eased in August from a 15-month high in July but still hold above the upper end of the Reserve Bank of India’s 2%-6% target range for a second month, a Reuters poll found.
“Domestic inflation may be gradually easing, but monsoon deficiencies are enough to keep food prices elevated,” said Anitha Rangan, an economist at Equirus Group.
While the easing of liquefied petroleum gas prices may help lower inflation in the near term, the rise in crude oil prices leaves limited scope for any fuel price cuts without a fiscal dent, Rangan added.
Meanwhile, the U.S. Treasury yields rose on Monday as investors awaited key inflation data amid fears that interest rates will remain higher for longer.
Even though the U.S. Federal Reserve is not expected to hike rates next week, the odds of a hike in November are nearly 43%.
Brent crude oil futures hovered just above $90 a barrel on Tuesday, as investors awaited a slew of macroeconomic data.
猜你喜欢
- Jindal Stainless to generate over 1
- Most long-only funds outperform Nifty50 in May
- Jefferies report unveils potential disruptions in insurance sector with new threshold premium concept
- JioBook- All your questions answered about Reliance’s Rs 16,499 4G laptop
- L&T Construction bags significant order for its Buildings & Factories business from HITES
- Stocks to buy- ABB, Eicher Motors’ shares find strong backing on charts, analysts see up to 17% returns
- KFin Technologies raises Rs 675 crore from anchor investors
- ack of strong growth and continued high inflation in US is a cause for concern for equity markets, given the gap between bond yields and earnings yields for the US market.”
However, he believes that the impact on the Indian market is going to be temporary since there could be some short-term impact on flows into Indian equity markets. But since the Indian economy is on a strong wicket and will continue to remain resilient.
“Improved fiscal situation, controlled current deficit, stable interest scenario combined with good corporate earnings should lead to limited impact on the Indian bond market and equity market too,” he added.
The midcap and smallcap indices took a bigger knock with the BSE MidCap fell 2.51%, while BSE SmallCap index dived 4.18%. According to Amnish Aggarwal, head, research, Prabhudas Lilladher, the valuations were already high and some correction was expected. “If the situation sustains as it is then further correction can’t be ruled out,” Aggarwal said.
Telecommunication and industrials indices were the top laggards with BSE Telecommunication declining 3.82%, followed by BSE Industrials falling 3.26%. JSW Steel (-2.99%), Tata Steel (-2.52%) and Tata Consultancy Services (-2.44%) were the top losers of Sensex.
Surprisingly, both foreign portfolio investors and domestic institutional investors were net buyers today. While, FPIs net bought shares worth Rs 252.25 crore, DIIs have purchased shares worth Rs 1,111.84 crore, as per provisional data from exchanges.
Calling this a “normal phenomena” Pankaj Pandey, head, research, ICICI Direct said, “I will not really give too much weight to a single day buying figure. Amid concerns of elevated interest rate and geopolitical tensions, in a typical market cycle, 8-10% correction is possible at any point in time.”
The brunt of geopolitical conflict, elevated interest rates and rising crude oil prices was also felt by other Asian- Pacific markets. Jakarta Composite Index lost 1.57% followed by Shanghai Composite Index and PSEi, which fell 1.47% and 0.89%, respectively. Nikkei and KOSPI declined 0.83% and 0.76%.
- Nifty closes above 19,500; guns for 20,055