The ‘summer of 2024’ began with sporting excitement but ended with global market volatility, fueled by unexpected policy shifts from central banks like the Bank of Japan and the US Federal Reserve. This article analyzes the impact of these events on India’s bond market, highlighting the government’s fiscal outlook, the Reserve Bank of India’s (RBI) policy stance, and potential investment opportunities in fixed-income products.
Indian equity benchmarks Sensex and Nifty tumbled significantly in early trade on Monday, mirroring weak global markets. Fears of a US economic slowdown, foreign fund outflows, and geopolitical tensions in the Middle East contributed to the decline. The 30-share BSE Sensex dropped over 2,400 points, while the NSE Nifty fell by nearly 500 points.
The Indian equity benchmark indices, BSE Sensex and Nifty50, opened in red on Thursday, with BSE Sensex dipping 200 points and Nifty50 near 22,300 levels. Despite the decline, technical analysts remain optimistic about the short-term market sentiment, as Nifty closed above critical moving averages. Global markets presented a mixed picture, with S&P 500 closing higher and Asian equity markets experiencing a decline. Foreign portfolio investors (FPIs) continued to be net sellers, while domestic institutional investors (DIIs) were net buyers.
Indian stocks are set to open higher on Wednesday, tracking gains in global markets. Asian markets have seen a surge, and US stocks closed at higher levels as investors turned their attention to the quarterly outcomes from Magnificent Seven and other large-cap growth stocks. The Indian stock market indices maintained their positive trajectory on Tuesday, marking the third straight session of gains. Equity benchmarks rose in Japan and South Korea, while futures for Hong Kong pointed up. US futures gained in early Asian trading. Meanwhile, weakness in measures of business activity helped keep alive forecasts for US rate cuts this year, which was positive for equities but weighed on the dollar and Treasury yields. The S&P 500 notched its best back-to-back rally in two months. Treasuries were largely steady after briefly extending gains on a solid $69 billion sale of two-year notes — but quickly returned to levels seen ahead of the auction — with 10-year yields little changed. Oil held a gain as an industry report showed shrinking US crude stockpiles and traders tracked progress toward fresh sanctions against Iran. Gold is little changed.
Benchmark equity indices, Sensex and Nifty, continued their winning streak for the third consecutive day on Tuesday, boosted by positive global market trends. The 30-share Sensex rallied 411.27 points to reach 74,059.89 in early trade, while the Nifty advanced 111.15 points to 22,447.55.
