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There will be a rise of inflows amid India getting inclusion in the FTSE Emerging Markets Government Bond Index

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  Indian Government Bonds in the JP Morgan global Bond Index Fund India will remain on the FTSE Fixed Income Country Classification Watch List for the potential reclassification of its Market Accessibility Level from 0 to 1, and consideration for inclusion in the FTSE Emerging Markets Government Bond Index (EMGBI), stated FTSE Russell, the leading global index provider, in its annual country classification review for countries monitored by its global equity and fixed income indices. The inclusion of nominal and inflation-linked local currency government bond markets in global FTSE fixed income indices is governed by the FTSE Fixed Income Country Classification Framework. Once India is added FTSE EMGBI, there will be huge inflows in the economy. It will further ease the international entry into the domestic markets. A core feature of this framework is the assignment of Market Accessibility Levels, which are reviewed on a semi-annual basis. The transparent nature of the Market Acce
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Views: India is today hot destination for portfolio and FDI investors

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India is today hot destination for portfolio and FDI investors Sadanand Shetty, CIO, Truequityadvisors  Sadanand Shetty, CIO, Truequityadvisors  “ P olitical environment do not alter the direction of economy except short term volatility ”,  said   Sadanand Shetty, CIO, Truequityadvisors  in an interview with  Anjali Raulgaonkar  Excerpts: What is your advice to the investors in the current economic situation amid expected slowdown in GDP, corporate earnings, global interest rate environment, valuations and flows in the economy and upcoming elections. India has robust economic outlook with consensus estimate of above 20% earnings growth for FY24 and years ahead. Interest rate pressure will create an opportunity to buy stocks at attractive level. Similarly, political environment do not alter the direction of economy except short term volatility. Sustained domestic flows will neutralize any impact of FII volatility. India is today hot destination for portfolio and FDI investors.
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Views- I don’t expect yields to cool off or come down in the near future

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  I don’t expect yields to cool off or come down in the near future Ganti Murthy, Senior Fund Manager/ Fixed Income Professional   Ganti Murthy, Senior Fund Manager/ Fixed Income Professional “I  see yields moving up slightly if the crude price crosses 100 USD ”,  said   Ganti Murthy, Senior Fund Manager/ Fixed Income Professional   in an interview with  Anjali Raulgaonkar  Excerpts: 1) Bond Yields are high. Fixed deposit rates are also high. Where do you see yields moving on from here in the near to mid-term and why ?.   Yields are a function of demand and supply of money. In the current scenario, the central bank (RBI) has decided to make money dearer by keeping policy rates high with the laudable prospect of containing inflation.   High demand for money results in higher yields. Investors want higher yields, RBI wants higher yields to cool down inflation, companies need money to finance their next phase of expansion meet demand and government needs money to finance its infrastructur
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Views- Higher lending rates does not bode well for any industry, including real estate

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Anuj Puri, Chairman - ANAROCK Property Consultants Expressing his views on Fourth Bi Monthly Monetary Policy Statement 2018-19 Anuj Puri, Chairman - ANAROCK Property Consultants, said, "In its monetary policy today, RBI has taken the unexpected stance of keeping the repo rates unchanged. This is surprising and contrary to the industry's expectations, which skewed more towards an increase on the back of increasing inflation and depreciation of the rupee. This move could have been seen as favourable for the real estate sector in the short-term; however, banks have already started increasing their lending rates even before the monetary policy was announced. It is, in fact, a worrisome development from a macro-economic long-term perspective. It will result in increased fiscal deficit, which does not bode well for any industry, including real estate, and also in further erosion of the rupee's value".  
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RBI eases norms for OMCs to borrow externally

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A move to curb Rupee fall amid rising oil prices The apex bank of India in order to stabilize Rupee, announced liberalization of the policy for public sector oil marketing companies (OMCs) in the case of external commercial borrowings (ECB) for working capital purposes. Under the extant policy, ECB can be raised under tracks I and III for working capital purposes if such ECB is raised from direct and indirect equity holders or from a group company, provided the loan is for a minimum average maturity of 5 years. As per the new provision, the Reserve Bank of India (RBI) on 03 October 2018, announced that public sector OMCs can raise ECB for working capital purposes with minimum average maturity period of three to five years from all recognized lenders under the automatic route. “In consultation with the Government of India It has been decided to liberalise the said provision and permit public sector Oil Marketing Companies (OMCs) to raise ECB for working capital purposes with
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SEBI Reviews Total Expense Ratio (TER) of Mutual Fund Schemes after 22 years; what's in store for investors?

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Capital markets regulator Securities and Exchange Board of India (SEBI), after 22 years revised the total expense ratio (TER) of mutual funds. In an attempt to reduce mis-selling and costs, the capital market regulator revised the TER in a board meeting on 18 September. The slab wise limits of TER introduced under SEBI (Mutual Funds) Regulations, 1996 have not been changed since then. “For starters lower expenses would translate into better returns for the investor. This would increase transparency as all scheme expenses are to be made public”, said Ganti Murthy, senior fund manager and fixed income professional.      The Assets Under Management (AUM) of mutual fund industry in India has grown manifold over the years. As on August 31, 2018, the AUM of the industry has crossed Rs 25 lakh crore. SEBI is of the view that while the AUM has grown multiple times, the benefit of economies of scale has not been fully shared with the investors. It is also observed that over a period
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Credit and bank deposits register growth in July-QNB Monthly Monitor

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    Indicating increasing and rising economic activities, banking sector in Qatar recorded a credit growth of 3.5% y-o-y in July 2018. According to the latest QNB Qatar Monthly Monitor, bank deposits have seen a 5.3% growth y-o-y in July. Though the public sector deposits with local banks have seen a 6.9% decline m-o-m in July, deposits from non-residents and private sector grew 6.1% and 2.2% m-o-m respectively in July, said the QNB report. Also, the broad money supply (M2) grew 10.3% y-o-y in this GCC country in July.   Key inter-bank rates continued to hold steady, while Qatar’s 5-year credit default swap (CDS) spread edged down to 82bp; its lowest since March, stated the report. According to QNB Qatar Monthly Monitor report, in the first quarter of the year, the real GDP growth slowed in Q1 thanks to a further fall in hydrocarbon output. Non-hydrocarbon GDP growth was a solid 4.9%, y-o-y.   Booming construction output, up 17.2% y-o-y, remained the key driver of
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