Indian Bond Market Registers Most Inflow In 7 Months

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    Even as the domestic rupee currency is traversing to new lows unabatedly due to external risk as well as rising dollar, the bond market of India has seen the biggest inflow to the tune of $403 million after being in receipt of just $105 million in the month of July.

    Indian Bond Market Registers Most Inflow In 7 Months
     

    The renewed interest in the Indian bond market is amid hopes that the worst run wherein the benchmark yield for rupee denominated bond scaled to its highest point since 2014 is now over.

    Global headwinds will sustain thanks to the continuous surge in crude oil price due to supply side concerns.

    But the inflow in the bond market showed no signs of relief for the Indian currency as it headed to new lows in the last two weeks.

    This year rupee has gone down by huge 8% or so on account of a number of triggers such as increased crude oil price, EM currencies rout and threat of fiscal slippage. In Friday's trade rupee even moved past the 71 level against the dollar.

    Singapore-based director of fixed income at Schroder Investment Management Ltd. is quoted in one of the reports as saying, "Yields are attractive but the overall negative sentiment around emerging markets will put pressure on Indian bonds". Also, he added that the "We're less bullish on bonds now" after recently increasing exposure to India".

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