Index Financial News

Natco Pharma Ltd.(up 0.66 per cent), Dr. Reddy's Laboratories Ltd.(up 0.55 per cent), Granules India Ltd.(up 0.54 per cent) and Pfizer Ltd.(up 0.41 per cent) were among the top gainers.

₹26.4 trillion or around 9.7% of gross domestic product. A Bloomberg report suggests this is the highest among the 20 countries in JPMorgan’s bond index. Over the years, governments in India have funded themselves through financial repression, with a significant portion of every new deposit coming into the banking system being funnelled into buying government bonds.

₹57,426 per 10 gm levels and went on to hit intraday low of ₹56,565 levels. Gold price today on MCX is currently quoting ₹56,734 per 10 gm levels, which is around 1.50 per cent lower from its Friday close price of ₹57,600 levels.

Federal Bank Ltd.(up 2.13 per cent), Punjab National Bank(up 0.49 per cent), IndusInd Bank Ltd.(up 0.34 per cent), Axis Bank Ltd.(up 0.24 per cent) and Bank of Baroda(up 0.18 per cent) were among the top gainers. Kotak Mahindra Bank Ltd.(down 0.99 per cent), Au Small Finance Bank Ltd.(down 0.96 per cent), HDFC Bank Ltd.(down 0.95 per cent), State Bank of India(down 0.83 per cent) and ICICI Bank Ltd.(down 0.69 per cent) were the top losers on the index.

Global investment bank JPMorgan’s decision to include Indian government bonds into its emerging market bond index is expected to be a game changer for the bond market, and a spillover effect will be seen in debt mutual funds as well. The inclusion in the bond index will channel global passive debt flows in India, as passive funds, by nature, are longer term, says Avnish Jain, head-fixed income, Canara Robeco Mutual Fund. Expectations of large FII inflows due to the bond inclusion and rate hike cycle peaking in both local and global markets should start attracting inflows into debt funds, Jain said. In an interview with ETMarkets, Jain highlighted the significance of the bond inclusion, the inflows outlook, and the asset allocation strategy for debt fund investors. Edited excerpts: Let’s begin with the hot topic today. What changes for India’s bond market with the JPMorgan bond index inclusion? The inclusion in the JPMorgan bond index is a game changer for the Indian government bond (IGBs) markets. While FII investments have been allowed in IGBs for a long time, they were more active and selective in nature, depending on the overall macroeconomic situation as well as relative attractiveness of the Indian debt market within the EM space. The inclusion in the bond index will channel global passive debt flows in India. Passive funds, by nature, are longer term and generally fluctuate only in case of change in weightage in the index.

Shares of Sobha Ltd.(up 4.45 per cent), Mahindra Lifespace Developers Ltd.(up 4.21 per cent), Oberoi Realty Ltd.(up 2.16 per cent), DLF Ltd.(up 2.07 per cent) and Godrej Properties Ltd.(up 1.1 per cent) ended the day as top gainers in the pack. On the other hand, Phoenix Mills Ltd.(down 1.91 per cent), Brigade Enterprises Ltd.(down 1.03 per cent) and Indiabulls Real Estate Ltd.(down 0.65 per cent) finished as the top losers of the day.

Shares of Hero MotoCorp Ltd.(up 2.93 per cent), Tata Motors Ltd.(up 2.62 per cent), Ashok Leyland Ltd.(up 1.66 per cent), Bajaj Auto Ltd.(up 1.14 per cent) and Bharat Forge Ltd.(up 0.73 per cent) ended the day as top gainers in the pack. On the other hand, Tube Investments of India Ltd.(down 3.72 per cent), Bosch Ltd.(down 1.55 per cent), MRF Ltd.(down 1.31 per cent), TVS Motor Company Ltd.(down 0.13 per cent) and Mahindra & Mahindra Ltd.(down 0.11 per cent) finished as the top losers of the day.

Mahindra Lifespace Developers Ltd.(up 4.28 per cent), Sobha Ltd.(up 3.99 per cent), Godrej Properties Ltd.(up 1.12 per cent), Oberoi Realty Ltd.(up 1.05 per cent) and DLF Ltd.(up 0.92 per cent) were among the top gainers. Phoenix Mills Ltd.(down 2.79 per cent) and Brigade Enterprises Ltd.(down 0.4 per cent) were the top losers on the index.

Tata Motors Ltd.(up 2.26 per cent), Samvardhana Motherson International Ltd.(up 1.36 per cent), Ashok Leyland Ltd.(up 1.32 per cent), Hero MotoCorp Ltd.(up 1.07 per cent) and Bharat Forge Ltd.(up 0.77 per cent) were among the top gainers. Tube Investments of India Ltd.(down 2.86 per cent), Bosch Ltd.(down 0.64 per cent) and Maruti Suzuki India Ltd.(down 0.14 per cent) were the top losers on the index.

Aurobindo Pharma Ltd.(up 5.67 per cent), Glenmark Pharmaceuticals Ltd.(up 3.57 per cent), Laurus Labs Ltd.(up 1.95 per cent), Dr. Reddy's Laboratories Ltd.(up 1.84 per cent) and Gland Pharma Ltd.(up 1.78 per cent) were among the top gainers.

FTSE Russell kept India on a watch list for inclusion in the FTSE Emerging Markets Government Bond Index (EMGBI), the index provider said on Friday. «Areas for improvement in the Indian government bond market structure highlighted by international investors remain largely unchanged from the previous March 2023 review,» FTSE said in its annual country classification review. The move comes a week after JPMorgan announced India will be a part of its influential GBI-EM index suite starting in June.

markets bond index starting June 2024. Although such indices have been around for a long time, IGBs were not part of them due to a variety of reasons. However, since 2013 — when the idea of index inclusion was first floated — the Indian authorities have made steady progress in facilitating foreign investment into IGBs.

New Delhi: Global index provider FTSE Russell kept India on a watch list for inclusion in the FTSE Emerging Markets Government Bond Index (EMGBI), the index provider said on Friday. "Areas for improvement in the Indian government bond market structure highlighted by international investors remain largely unchanged from the previous March 2023 review," FTSE said in its annual country classification review.

India retained 40th position on the Global Innovation Index 2023, released on Thursday, The annual index, by the World Intellectual Property Organization, ranked 132 economies on the innovation index. «The consistent improvement in the GII ranking is owing to the immense knowledge capital, the vibrant start-up ecosystem, and the amazing work done by the public and private research organizations,» NITI Aayog said in a statement. According to the Aayog, India has been on a rising trajectory, over the past several years in the Global Innovation Index (GII), from a rank of 81 in 2015 to 40 in 2023.

Bandhan Bank Ltd.(up 0.93 per cent), Axis Bank Ltd.(up 0.67 per cent), Punjab National Bank(up 0.49 per cent), Bank of Baroda(up 0.44 per cent) and State Bank of India(up 0.27 per cent) were among the top gainers. Au Small Finance Bank Ltd.(down 2.31 per cent), Kotak Mahindra Bank Ltd.(down 1.41 per cent), Federal Bank Ltd.(down 0.69 per cent), ICICI Bank Ltd.(down 0.6 per cent) and IDFC First Bank Ltd.(down 0.3 per cent) were the top losers on the index.

Biocon Ltd.(up 1.53 per cent), Laurus Labs Ltd.(up 1.43 per cent), Natco Pharma Ltd.(up 1.03 per cent), Sun Pharmaceutical Industries Ltd.(up 0.81 per cent) and Torrent Pharmaceuticals Ltd.(up 0.66 per cent) were among the top gainers. Granules India Ltd.(down 1.1 per cent), Abbott India Ltd.(down 0.85 per cent), Ipca Laboratories Ltd.(down 0.81 per cent), Divi's Laboratories Ltd.(down 0.72 per cent) and Alkem Laboratories Ltd.(down 0.7 per cent) were the top losers on the index.

Anurag Singh, Managing Partner, Ansid Capital, says “rates are going to be higher for a bit longer. The Federal Reserve last week clearly revised the dot plots and this time they are saying there are no cuts at least till the middle of 2024. If we put all this together, the picture is that when the rates are 5.5% with another 25 basis probably coming, can the markets be at 20x multiples? By the way, the entire rally was hinging on just seven stocks. That is also kind of coming back to roost.” What is this extended move on the dollar index for the last six days indicating? Traditionally we spell bad news for equities, especially emerging markets? Yes, true.

Indian sovereign bonds' inclusion in the JP Morgan Global Bond Index-Emerging Markets (GBI-EM) may support diversification of the investor base but is unlikely to significantly impact the country’s credit profile and fiscal policy approach in the near term, rating agency Fitch said in a report on Wednesday. “This could serve to lower funding costs slightly, and support further development of domestic capital markets, but direct positive effects on India’s credit profile will be marginal in the near term,” the report stated. The inclusion in the index is likely to facilitate $24 billion of inflows between June 2024 and March 2025, with India expected to account for a maximum weight of 10% of the index. JP Morgan GBI-EM comprises 23 bonds with a total value of $330 billion. “We expect the positive effect on the sovereign rating of India’s inclusion in the JP Morgan Global Bond Index-Emerging Markets (GBI-EM) to be small, especially in the near term, as its impact on fiscal credit metrics is unlikely to be significant,” the report further stated. However, it did note that flows could be greater if other indexes also included Indian government securities. Experts indicate that an inclusion in Bloomberg Global Aggregate Index could bring in another $15 billion in passive flows. “The resulting increase in foreign investor holdings of central government maturities is likely to be large — they accounted for only around 1.6% ($19 billion) of the market as of Q2-2023, including about $12 billion of the bonds issued under the fully accessible route (FAR),” Fitch noted, highlighting that the impact of foreign investors in debt pricing is likely to be limited. Fitch was of the view that the move could stimulate further

LTIMindtree Ltd.(up 0.71 per cent), Coforge Ltd.(up 0.59 per cent), L&T Technology Services Ltd.(up 0.43 per cent), MphasiS Ltd.(up 0.09 per cent) and Tech Mahindra Ltd.(up 0.05 per cent) were among the top gainers. Infosys Ltd.(down 0.48 per cent), HCL Technologies Ltd.(down 0.42 per cent), Wipro Ltd.(down 0.29 per cent), Persistent Systems Ltd.(down 0.05 per cent) and Tata Consultancy Services Ltd.(down 0.01 per cent) were the top losers on the index.

Cipla Ltd.(up 1.82 per cent), Granules India Ltd.(up 1.61 per cent), Lupin Ltd.(up 1.56 per cent), Gland Pharma Ltd.(up 1.49 per cent) and Dr. Reddy's Laboratories Ltd.(up 1.25 per cent) were among the top gainers.

Sona BLW Precision Forgings Ltd.(up 0.46 per cent) and Ashok Leyland Ltd.(up 0.08 per cent) were among the top gainers. Tube Investments of India Ltd.(down 1.67 per cent), Eicher Motors Ltd.(down 1.04 per cent), Balkrishna Industries Ltd.(down 0.99 per cent), Samvardhana Motherson International Ltd.(down 0.92 per cent) and Bajaj Auto Ltd.(down 0.74 per cent) were the top losers on the index.