Indian debt funds set to extend $4.5 billion bond selloff after RBI policy shift
RBI moved higher.
· Economic Times Markets
Indian mutual funds have sold $4.5 billion in government bonds since July, prompted by changing rate expectations. The Reserve Bank of India raised rates for the first time in nearly four years, signaling further increases. Many asset managers are shifting to short-duration assets to mitigate risks associated with rising yields.
The analysis
Against that, the stock is -1.0% on the day at ₹133.16, and has returned -2.9% over three months. It sits 25% below its 52-week high. The banks sector has moved -2.2% over the same period, so Bank of India is running 0.7 points behind its peers.
For Bank of India, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- With RBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- The company directly in focus is BANKINDIA.
- Sector exposure: Banks.
In this story
Related coverage
Explained: How RBI is trying to arrest the rupee’s slide
Indian central bank curbs to temper corporate rush to hedge against rupee weakness
Pressure on rupee may continue after temporary gains on RBI actions, say economists
RBI to meet daily dollar needs of 3 state-run oil firms to ease rupee pressure
EV stock to buy: Ather Energy shares - 134% returns in a year, Bank of Baroda Caps sees 19% more upside | Target price