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India makes big moves to attract foreign investments in bonds: How will this impact stock market?

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India makes big moves to attract foreign investments in bonds: How will this impact stock market?
As India sees incessant FII selloff so far this year, the government and RBI announced a slew of measures to ease foreign investments in government securities, with analysts suggesting that these may provide some short-term support for Dalal Street.

India scrapped the long-term capital gains tax on investments by foreign institutional investors (FIIs) in government securities through an ordinance issued on Friday. The government has now exempted FIIs from tax on any interest income from government securities, as well as capital gains arising from their sale, exchange or transfer, according to an official gazette. Separately, while announcing the outcome of the MPC meeting, RBI Governor Sanjay Malhotra also unveiled a series of measures to boost FPI investments, including expanding the Fully Accessible Route (FAR) to cover new issuances of 15-, 30- and 40-year government bonds.

Limits on investments by NRIs and OCIs in equity instruments without Sebi registration are being raised, allowing them to invest larger amounts without regulatory registration. The facility is also proposed to be extended to all Persons Resident Outside India (PROIs), bringing them on par with NRIs and OCIs. This came as the RBI kept the repo rate unchanged at 5.25%

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What does this mean for Indian stock market?

The proposal to increase investment limits for NRIs and OCIs in listed equity instruments without Sebi registration, and to extend the same facility to all individual Persons Resident Outside India (PROIs), is a significant step toward broadening participation in Indian capital markets, which is expected to improve market depth, liquidity and long-term capital inflows, said Arun Poddar, CEO of Choice International.

He highlighted that equally important is the removal of capital gains tax on government securities investments for foreign investors. “This move strengthens the attractiveness of India’s bond market and could encourage greater foreign participation in government debt. At a time of heightened global volatility, these measures reinforce investor confidence, support capital inflows, and reaffirm India’s commitment to building deeper, more globally integrated financial markets, with the policy rate expected to remain low for an extended period,” he said.


The government’s move to exempt Foreign Institutional Investors (FIIs) from capital gains tax on any interest earned from government securities is “highly positive” for the capital markets, said Sumit Singhania, Head of Research at Bajaj Broking. “This fiscal cushion arrives at a crucial time, offering a strong shield to domestic markets as the RBI chief warned of volatile forex markets driven by shifting global sentiments,” he added.
The policy is distinctly positive for bond markets and well-capitalized Banks and NBFCs, which benefit from targeted hedging subsidies and systemic stability, according to Archit Doshi, Senior Vice President at PL (Prabhudas Lilladher) AMC. “Conversely, one should be underweight rate-sensitive sectors, which remain highly vulnerable to margin compression, higher inflation expectations, and the threat of the RBI reaching its tightening tipping point,” he said.Rajeev Radhakrishnan, CFA, CIO of Fixed Income at SBI Mutual Fund, also said that the announcements aimed at enabling more dollar inflows are more significant in the near term, even though the overall policy stance has been broadly in line with expectations. “The concessional swap facility should help stabilise short end market rates and the foreign exchange market in the near term,” he said.

For equities and debt markets, the measures to attract FII inflows are supportive of liquidity and inflows, while for the rupee, they signal a clear intent to anchor expectations and reduce volatility amid global oil shocks and sustained foreign selling pressure, said Ajit Mishra, Senior VP of Research at Religare Broking.

Sachin Bajaj, Chief Investment Officer at Axis Max Life Insurance, also said that the initiatives are expected to support capital inflows, deepen domestic bond markets, and provide support to the Indian rupee over the short to medium term.

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RBI’s hawkish tone and the Indian stock market

While the measures taken to attract FII inflows in the debt market will likely provide short-term support for Dalal Street, analysts advised caution over the RBI’s hawkish policy stance. While the RBI maintained its policy repo rate as per expectations, the tone was much more cautious than in previous meetings.

Sachin Bajaj highlighted that the policy emphasised preserving macroeconomic stability amid the prevailing global macroeconomic environment. “We believe there are significant risks to inflation in the coming months due to the pass-through of higher commodity prices to consumers and elevated food prices resulting from a below-normal monsoon. Going forward, there is a risk of an upward revision in inflation projections, and given the evolving global backdrop, we believe the RBI is likely to maintain a prudent, data-dependent approach. Future policy actions will be contingent on evolving growth-inflation dynamics and global developments,” he added.

Also read: Explained: Sebi’s Rs 15.15 lakh crore revenue inflation allegations against Rajesh Exports

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While hawkish rhetoric without an accompanying rate hike provides a temporary respite for equity markets, it does not constitute an unequivocal endorsement of investment, particularly in highly rate-sensitive sectors such as real estate, automotive, and consumer discretionary goods, said Vipul Bhowar, Senior Director, Head of Equities at Waterfield Advisors.

“Should inflation necessitate a rate increase later this year, these sectors are likely to experience pressure on both margins and demand. For investors, the current strategy emphasises capital preservation by focusing on high-quality equities with strong pricing power. This cautious approach is designed to navigate the prevailing geopolitical uncertainties until conditions stabilise,” the analyst added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Harley-Davidson under fire over alleged ‘woke’ leadership

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Harley-Davidson under fire over alleged 'woke' leadership

Harley-Davidson’s recent executive hires risk alienating Americans fed up with alleged wokeness from corporate icons like the motorcycle manufacturer, a conservative activist is warning.

Robby Starbuck, who has waged a public campaign against corporate diversity, equity and inclusion (DEI) policies and wokeness, criticized Harley-Davidson in a post on X for appointing Artie Starrs as CEO last year due to his sponsorship of groups contributing to San Francisco Pride and offering antiracism training to teachers while in his previous corporate stops.

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Starbuck led a consumer boycott against Harley-Davidson in 2024, which prompted the company to announce a rollback of DEI programs, but he warned that the hire suggests the company wasn’t committed to those changes over the long-term.

“Harley-Davidson’s recent hires show me they didn’t learn anything from the backlash they already faced for going woke,” Starbuck told FOX Business.

WHITE HOUSE STUDY SAYS DEI POLICIES COST US ECONOMY BY PROMOTING UNQUALIFIED MANAGERS

People in a Harley-Davidson store

Harley-Davidson is facing criticism over recent executive hires. (Scott Olson/Getty Images)

“You can’t tell working-class American riders that you respect them while filling leadership with people tied to woke policies, DEI activism and cultural radicalism. It is out of step with Harley’s customer base and heritage,” Starbuck said.

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“At this point, enough is enough. They don’t deserve another chance. It’s time for riders to go elsewhere. Only through a real power struggle can Harley be saved,” he added.

Starbuck’s social media criticism of Harley-Davidson also included the company’s chief brand officer, Marcus Fischer, who previously led an advertising agency and encouraged efforts to boost transgender representation.

Ticker Security Last Change Change %
HOG HARLEY-DAVIDSON INC. 24.35 +0.10 +0.41%

IS CORPORATE AMERICA BREAKING UP WITH DEI OR JUST TAKING ITS RELATIONSHIP UNDERGROUND?

“I expose this stuff because consumers deserve to know who is running the brands they support and what values those companies are pushing behind the scenes,” Starbuck said. “This isn’t about revenge. It’s about accountability. Companies should be politically neutral, merit-based and focused on making great products, not chasing approval from far-left activists.”

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“My goal is to give forgotten consumers a voice and make it clear that if brands keep choosing woke ideology over their customers, those customers can and should walk away. There are consequences for woke behavior and woke executives,” he added.

Robby Starbuck interview

Conservative activist Robby Starbuck said that Harley-Davidson’s hires shown it hasn’t learned from the 2024 anti-DEI backlash. (Bess Adler/Bloomberg via Getty Images)

DEI DISCLOSURE PARTICIPATION PLUMMETS AMONG MAJOR COMPANIES AS CORPORATE PULLBACK CONTINUES

FOX Business has reached out to Harley-Davidson for comment.

Harley-Davidson provided a statement to USA Today in a report about Starbuck’s criticism that defended its CEO.

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“Since stepping into the role eight months ago, CEO Artie Starrs has spent time across the country listening directly to our riders, dealers, employees, and unions,” Harley-Davidson said in the statement. 

“As our dealers and employees can attest, our only agenda is getting back to basics: building great motorcycles, strengthening our network of 500+ U.S. dealers, and supporting a workforce that is proud of the product they put on the road. We have made meaningful improvements and changes, and that work continues,” the company added.

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TOMY recalls 40,000 baby bottles sold at Walmart over choking hazard

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TOMY recalls 40,000 baby bottles sold at Walmart over choking hazard

TOMY International issued a recall Thursday for roughly 40,000 reusable baby bottles sold exclusively at Walmart after more than 130 reports were sent in about a potential choking hazard.

The advisory impacts Boon NURSH 8 oz reusable baby bottles, specifically the three-pack bottles sold in the “pink tie-dye” color pattern, according to the U.S. Consumer Product Safety Commission (CPSC).

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Boon NURSH 8 oz Reusable Baby Bottles

At least 135 reports were received about the recalled Boon NURSH 8 oz Reusable Baby Bottles. (CPSC / Fox News)

WALMART WARNS SHOPPERS COULD FACE HIGHER PRICES AS FUEL COSTS SURGE, TAX REFUNDS DRY UP

The CPSC said the hard plastic outer shell of the bottle can bubble or partially peel off, which creates loose pieces of plastic film that pose a choking risk to young children.

The affected products, which were manufactured in Vietnam, were sold at Walmart stores nationwide and online at Walmart.com from November 2025 through May 2026 for around $20. 

A Walmart store in Illinois.

FILE – The baby bottles were sold exclusively at Walmart, according to officials. (Christopher Dilts/Bloomberg via Getty Images / Getty Images)

ASBESTOS FEARS SPARK URGENT RECALL OF 120K+ SQUEEZE TOYS SOLD AT WALMART, OLLIE’S

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So far, TOMY has received 135 reports of the outer plastic shell bubbling or peeling, though no injuries have been reported.

Consumers are urged to stop using the recalled baby bottles immediately. 

Boon NURSH 8 oz Reusable Baby Bottles

The Boon NURSH 8 oz Reusable Baby Bottles were recalled due to a choking hazard. (CPSC / Fox News)

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WMT WALMART INC. 119.77 +2.03 +1.72%

Customers can contact TOMY to receive a replacement set of three bottles in a different color or a refund in the form of a $22 store credit for booninc.com.

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TOMY and Walmart did not immediately respond to FOX Business’ request for comment.

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India Meteorological Department to use dynamic models for forecasts

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PUNE: The statistical models used by the India Meteorological Department (IMD) had failed to predict all the three droughts in India in the last decade. Though statistical models will still be used for monsoon forecast, the ministry of earth sciences is putting more emphasis on dynamic models.

M Rajeevan of National Atmospheric Research Laboratory said, “the failure to predict the 2009 drought has raised many serious issues. On the other hand, the state-of-the art coupled ocean atmospheric models have sho-wed improved skills in predicting inter annual variability of Indian summer monsoon rainfall.”

He was speaking at the golden jubilee conference of Indian Institute of Climate Change (IITM), Pune, on ‘opportunities and challenges in monsoon prediction in changing climate’. Since 2011, the IITM has used the coupled model for monsoon forecast.
Better weather forecast needs data from all parts of the globe. “In every part of the world, farmers are saying that the climate is not as it used to be. Hence, traditional knowledge is also failing. For better prediction of weather, we need observations from all countries. We need super computers of even higher capacities. We need to have knowledge about how to translate scientific progress into concrete applications,” said Michel Jarraud, secretary general, World Meteorological Organisation.

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Genius Group Limited (GNS) Discusses AI Treasury Strategy and Execution of Phase 1 – Slideshow

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Genius Group Limited (GNS) Discusses AI Treasury Strategy and Execution of Phase 1 – Slideshow

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Marvell Technology options trading surges to 605,010 contracts

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Marvell Technology options trading surges to 605,010 contracts

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Marks and Spencer could leave Lancashire town for bigger site

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New Burscough site would be three times the size of Ormskirk site

The plans for the new Marks & Spencer store near Ringtail Retail Park in Burscough.

The plans for the new Marks & Spencer store near Ringtail Retail Park in Burscough(Image: M&S)

Marks & Spencer could close its Ormskirk town centre store and move to a new, bigger site at Burscough.

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The retailer is working on plans for a new 18,000 sq ft food-hall near Ringtail Retail Park in Burscough. The new site would be three times the size of the current M&S food store in Ormskirk, according to M&S.

Existing staff working in the Ormskirk site will transferred to the new site and around 25 additional jobs will be created, if the changes go ahead. The Ormskirk shop, off Market Way, would close.

Property developer Rothstone Estates is working with the retailer on plans for the proposed new Burscough site, near the A59 Liverpool Road South and Pippin Street roundabout. Customers would access the store from High Lane. The site was previously occupied by a care home.

M&S has opened a public survey on-line, asking people about the idea.

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It said: “We have been searching for a new site locally for some time, so we can provide a better shopping experience and wider product range for customers. We are keen to secure our future locally so we can continue to offer our high quality, award-winning products for Burscough and Ormskirk residents. If planning is approved, the new store will stock the full M&S food range, including fresh produce and the latest product launches.”

The plan includes an in-store bakery, dedicated flower and wine shops, and a click and collect point for on-line orders.

Outside, 152 parking spaces are proposed and electric vehicle charging points. Landscaping is also around the site perimeter. M&S expects the new site will be open from 8am-9pm on Mondays to Saturdays, and 10am to 4pm on Sundays.

West Lancashire Council is expected to handle the Burscough planning application, if M&S goes ahead with the ideas. The plan could spark a debate among councillors, businesses and residents about the impact on Ormskirk, the local economies of different towns and future traffic levels in Burscough.

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M&S says it has long-standing relationships with 9,000 select farms across the UK including 20 in Lancashire.

Rothstone Estates is described as a specialist in mixed-use property schemes, roadside and food retail developments. Based in Yorkshire, it has worked on developments across the country including other new M&S stores.

To find all the planning applications, traffic diversions, road layout changes, alcohol licence applications and more in your community, visit the Public Notices Portal.

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FF Global Holdings Pursues U.S. IPO On Excessive Valuation

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FF Global Holdings Pursues U.S. IPO On Excessive Valuation

FF Global Holdings Pursues U.S. IPO On Excessive Valuation

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LK Advani’s ‘gift’ makes its way to State Department exhibition hall

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WASHINGTON: An elephant figurine, made up of artificial pearls and semi-precious stones, which was gifted by the then Indian Home Minister Lal Krishna Advani to US Secretary of State Colin Powell in 2002, has made its way to the State Department exhibition hall.

“Secretary Colin Powell received this gift from Indian Minister of Home Affairs Lal Krishna Advani,” the State Department said in its remarks written at the bottom of the elephant figurine.

In fact, it is one of the less than 50 gifts among the hundreds of those received by the Secretary of State over the year by foreign dignitaries that have been selected for display at the Exhibit Hall, in the centre of Henry S Truman Building, headquarters of the State Department, official sources said.

Describing the gift, the State Department said, “with royal aplomb, the great man rides in the howdah, or canopied seat, as the mahout or guide in front leads the elephant”.

“This colourful cloisonne figurine harks back to times when elephants were an indispensable part of Indian life – for transportation, fighting battles, protecting land and traversing forests,” it said.

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The elephant figurine was made by Neeru Goel, an Indian artist from Bengal, who specialises in enamelware sculptures.
The Department officials, while explaining the reason for the selection of this particular gift from India to be displayed at the exhibition hall, said that elephants are a cultural icon of the country, which over centuries have become a status symbol representing wealth, wisdom, and strength.

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Trump to meet AI leaders to discuss US investment in their companies

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Trump to meet AI leaders to discuss US investment in their companies

The US president said on Friday he expects to meet the leaders of top AI companies next week.

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Burgum calls California an energy desert amid policy missteps

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Burgum calls California an energy desert amid policy missteps

Trump officials are warning that California’s dependence on foreign oil has become more than an economic issue, arguing it now poses a broader national security concern as geopolitical tensions continue to affect global energy markets.

U.S. Energy Secretary Chris Wright and Interior Secretary Doug Burgum joined FOX Business’ David Asman Friday on “Varney & Co.” to discuss domestic energy production, California’s reliance on imported crude and efforts to restart production at the offshore Sable Oil Project near Santa Barbara.

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OIL PRODUCERS ORG SHREDS CALIFORNIA DEM FOR BLAMING IRAN WAR FOR HIS DISTRICT’S GAS PRICES

California Governor Gavin Newsom

Governor Gavin Newsom (D-CA) speaks to reporters inside the U.S. Capitol in Washington, D.C. (Nathan Posner/Anadolu / Getty Images)

California remains one of the nation’s largest energy-consuming states, but its in-state oil production has steadily declined over the past several decades. As production has fallen and refinery capacity has shrunk, the state has increasingly turned to foreign suppliers to meet demand.

Wright said restarting previously drilled offshore wells could help reduce that dependence while strengthening energy security for military operations across the state.

CALIFORNIA BUSINESS OWNERS ‘WORKING FOR PEANUTS’ AS COSTS, RECORD GAS PRICES AND REGULATIONS DEVOUR PROFITS

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“We have 30 military facilities in California, which gets over 60% of its oil imported from overseas,” Wright said.

“This is a way to increase energy security for our military operations in California and start to change the game for businesses and consumers in the state of California.”

The comments come as energy security has reemerged as a major policy issue amid ongoing instability in parts of the Middle East and continued debate over domestic oil production.

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Burgum argued that Gov. Gavin Newsom’s energy policies have increased reliance on foreign suppliers while contributing to higher fuel costs for residents.

Doug Burgum

Interior Secretary Doug Burgum delivers remarks outside the White House on March 19, 2025 in Washington, D.C. (Getty Images)

ENERGY SECRETARY CHRIS WRIGHT WARNS CALIFORNIA’S ENERGY CRISIS UNDER NEWSOM COULD THREATEN NATIONAL SECURITY

“They’re regulating refineries out of existence. California… imports… 60% of their oil from foreign countries. That is an absolute national security risk,” Burgum stressed.

He pointed to Iraq as California’s top foreign oil supplier earlier this year and said the state has become increasingly dependent on imported energy as refinery capacity has declined.

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“The number one importer into California on February 1 of this year was Iraq… They’ve [California] turned themselves into an energy desert, an energy island,” he continued.

ZELDIN TOUTS US ENERGY FUTURE, SAYS INDO-PACIFIC NATIONS INCREASINGLY INTERESTED IN AMERICAN SUPPLY

The Interior secretary also tied domestic energy production to broader economic and national security goals, arguing that reliable and affordable energy remains critical for manufacturing, electricity generation and emerging technologies such as artificial intelligence.

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President Trump’s energy policies are making the nation more secure, the world more peaceful, and is absolutely making America more affordable,” Burgum said.

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