Indian government bonds fell for a second day on speculation a decline in the yield on notes due 2022 to a three-year low this week is deterring buyers.
India’s benchmark stock index ended a two-day decline amid optimism overseas inflows into domestic shares will continue after the Bank of Japan maintained its monetary easing plan.
Birla Corp., an Indian cement maker that reported its first profit increase in three years this week, plans to spend 22 billion rupees ($397 million) to add capacity, forecasting demand will revive.
South Korea’s central bank chief said a U.S. pullback from monetary easing would spur risks worldwide from rising bond yields, adding to a global debate over how to manage costs from exiting record stimulus.
India is using a surge in inflows into local bonds and equities to rebuild its currency reserves, boosting its ability to avoid a junk debt rating.
India’s rupee snapped a three-day decline after foreign investors pumped money into the nation’s assets as inflation eased to a 41-month low.
Indian bonds rose, pushing the 10- year yield to the lowest level since 2009, on speculation easing inflation will make room for the central bank to add to this year’s three interest-rate reductions.
Finance Minister Palaniappan Chidambaram comments on gold imports and India’s credit rating. He spoke to reporters in New Delhi today.
India’s benchmark stock gauge fell from its highest level in more than two years as concern the rally has exceeded the outlook for earnings growth outweighed inflows from foreign funds.
India’s benchmark bonds declined on speculation yields near the lowest level in three years will deter buyers.