Lates News

The Indian stock market opened significantly higher, with government bond yields opening significantly lower, indicating a marked improvement in market sentiment after India reached a trade agreement with the United States. The yield on the benchmark 2035 maturity government bond, with a face value interest rate of 6.48%, was reported at 6.7230%, a slight decrease from Monday's 6.7662%, when the closing price reached its highest level in over a year. The United States has reduced tariffs on Indian exports from 50% to 18%, boosting the local currency and stock market that had been severely affected by foreign outflows. A trader at a private bank stated, "From a fundamental perspective, the agreement and the recovery of the rupee exchange rate are good news." The trader pointed out that the policy decisions of the Reserve Bank of India and supply-demand dynamics will continue to be key factors driving the bond market. The Reserve Bank of India will announce its policy decision on Friday, after conducting a 500 billion rupee debt buyback on Thursday.