You are here: Home » Markets » News
Business Standard

How should bond, equity investors place themselves post RBI policy outcome?

What really became the centerpiece of the policy outcome was the announcement of the secondary market G-sec acquisition programme which the bond market needed the most

Topics
RBI | RBI Policy | RBI Governor

Saloni Goel  |  New Delhi 

The Reserve Bank of India (RBI) at its first policy outcome for the financial year 2021-22 struck a dovish tone, much along expected lines, as the monetary policy committee unanimously voted to keep the key repo rate unchanged at 4 per cent and vowed to hold 'accommodative' stance.

But what really became the centerpiece of the policy outcome was the announcement of the secondary market G-sec acquisition programme which the bond market needed the most. The move was well-received by the money market as the yield on the 10-year government bond fell by nearly 6 basis points to 6.078%. While the central bank kept the growth projections unchanged at 10.5% for FY22, it flagged off Covid as a key risk to the outlook. Amid this backdrop, what should investors do now?

Lakshmi Iyer, CIO-Debt and Head Product at Kotak Mahindra AMC and Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services talks about how equity investors should place themselves in this market, if the cool off in bond yields would sustain and what should be the fixed income investment strategy?

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, April 07 2021. 18:03 IST
RECOMMENDED FOR YOU
.