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Junk-rated government dollar bonds from El Salvador to Nigeria and Turkey are outperforming this month as money managers take on risky bets in exchange for out-sized returns. The question now is whether orthodox policies can keep luring capital as major central banks reiterate their commitment to bring down inflation.

There was a huge demand in March. It was more opportunistic as we did not advertise. What is interesting is that below ₹5 lakh (sum assured) grew by 50% in March.

Indian markets closed higher on Friday, with the S&P BSE Sensex increasing over 400 points, and the Nifty50 closing above 18,800. Buying was seen in banks, capital goods, FMCG, and public sector stocks, while IT and realty stocks experienced selling. Three stocks, Data Patterns, Mazagon Dock Shipbuilding, and IDFC First Bank, either hit a 52-week high or saw a volume or price breakout. Data Patterns closed at an all-time high; Mazagon Dock Shipbuilding saw a Pole and Flag pattern breakout; and IDFC First Bank saw a rally above Rs 70.

Several largecap companies in India, including Hindustan Aeronautics, Bharat Electronics, PI Industries, Titan Company, Britannia Industries, Cholamandalam Investment and Finance Company, and ITC, broke their 5-year highs on June 16th, 2023. This showed their exceptional performance, reflecting a positive shift in market sentiment and increased investor confidence. These milestones also increase institutional investor and trader attention, leading to increased liquidity and trading activity. These companies operate in diverse sectors such as defense, agricultural, consumer goods, food processing, financial services, and conglomerate.

Tax-free bonds and tax savings bonds are investment options that offer tax benefits to investors in India. Tax-free bonds provide completely tax-free interest income, have a generally higher interest rate and no lock-in period, while tax savings bonds provide tax benefits on the principal amount, have a relatively lower interest rate, a 5-year lock-in period and the interest income is taxable. Moreover, Section 80CCF allowed taxpayers to claim deductions for long-term infrastructure bonds, but the option was terminated from FY2012-13. Finally, capital gains bonds offered by government-backed entities provide investors with the ability to invest capital gains from property sales and avoid paying taxes on such profits.

A customised sustainable financial plan is essential for individuals to overcome market risks and maximise the production of income through wealth preservation. Although there is no asset that is risk-free, some are more secure than others. The choice of asset classes should be based on risk appetite and future aims in order to plan out asset allocation comprehensively for sustainable income generation. A finance plan can help in making informed decisions whilst managing assets, allocating wealth and accumulating funds gradually. Creating both long and short-term objectives is important for a sustainable financial plan.

Indian benchmark indices are approaching their all-time high levels and a new record may be achieved soon, says Sameet Chavan, head technical and derivative research, Angel One. Nifty50 is just 62 points away from its life high of 18,887.6 points, while the Sensex is 162 points away from its all-time high of 63,583.07 points. Investors will closely monitor the trend of global macroeconomic indicators, such as the Bank of England interest rates decision, and monsoon rains in India, to sustain this momentum. Foreign portfolio investments have also played a key role in sustaining the Indian market.

The Indian government is launching the Sovereign Gold Bond Scheme (SGB) 2023-24, Series I, opening for subscription on 19 June, with a nominal value of INR5,926 ($92.5) per gram of gold. Online subscribers are also eligible for a discount of INR50 per gram. Subscriptions end on 23 June. SGBs offer several advantages over physical gold, including an interest rate of 2.5% on capital appreciation, capital gains tax exemption after eight years of investment, guarantee against default, and high liquidity via exchange trading, said personal finance expert Jitendra Solanki.

Godrej Properties, Prestige Estates, and Brigade Enterprises led the 3.9% surge in the BSE Realty index last week. While momentum indicators such as RSI indicate an overbought situation for the stocks in the realty sector and some consolidation is needed, the overall outlook of the market remains bullish. Banking stocks such as ICICI Bank, HDFC Bank, and SBI pulled down Nifty Bank; while technical charts suggest momentum is missing in Bank Nifty, Nifty appears more positive. The BSE IT index faced a stock-specific drag with 48% of the index being dragged down by TCS and Wipro.

The ex-dividend date for stocks is usually set one business day before the record date.