With Indian markets progressing at a much faster rate compared to its Asian compatriots, Frankin Templeton has bought Govt Bonds worth Rs.9,000 Crores making the company the second highest bulk purchase by an overseas investor.
The company has bought bonds worth Rs.1,500 crores on Monday and ended up buying another bulk of Rs.7,500 crores on Tuesday. It is to be noted here that the company had already bought somewhere between 15-17K crores of Sovereign Bonds between March-April. Back in Aug 2014, it bought Rs.16,000 crore worth of bonds in a single day.
“India’s macro fundamentals are strong and improving, With a stable currency this makes our country an attractive destination for overseas investors. ” said Sandeep Bagla, associate director at Trust Capital Services.
“The latest reform measures including GST has lifted confidence among overseas investors, India would continue to see fresh bout of fund inflows as many global institutions are convinced about the country’s economic prospects.” said Shashikant Rathi, head of treasury at Axis Bank.
Indian economy is backed by robust banking system and with rupee gaining strength every now and then, it has pushed confidence among the overseas investors since the Government is also stable with lot of econmic welfare measures being taken.
Indian bonds also offer scope for capital appreciation as the Reserve Bank of India may reduce interest rate given the low inflation rate which may work out at 25 basis point and the announcement toward the same is expected to be made by August 2nd.