Corporate bonds saw the biggest outflow in about two years after the government last month announced a bigger-than-expected borrowing plan in its budget, triggering a spike in yields
Topics
Investors | Budget 2021 | corporate bonds
Bloomberg
Last Updated at March 10, 2021 02:07 IST
Investors withdrew 172.2 billion rupees ($2.5 billion) from Indian stock and company debt mutual funds in February as concerns mount about the sustainability of returns.
Corporate bonds saw the biggest outflow in about two years after the government last month announced a bigger-than-expected borrowing plan in its budget, triggering a spike in yields. Equity indexes, which benefit from a stimulus, surged to a fresh record, prompting local investors to book profits.
“The period of unusual returns is getting over,” said Vidya Bala, co-founder at Chennai-based research firm Primeinvestor.in.
“Also, many investors could be waiting it out till the interest rate environment settles.”
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First Published: Wed, March 10 2021. 01:59 IST
read the full story about Investors dump $2 bn worth of India stock, bond funds after Union Budget
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