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"The market closed near its peak, with the Bank Nifty index emerging as a standout performer. Despite a rocky start, the PSU index demonstrated resilience, bouncing back from early declines. With few definitive signals this week, the market focus remains on the trajectory of the dollar index and US bond yields," said Santosh Meena, Head of Research, Swastika Investmart.
Stiff competition from comparable investment options and a continuing perception of the government bond product being shrouded in mystery are key factors as to why they have failed to draw in mass participation into sovereign debt the way the near-ubiquitous systematic investment plan has managed to for equities.
India aims to borrow 6.55 trillion rupees ($78.68 billion) on a gross basis through the sale of bonds in October-March, and officials of India's federal government and the central bank are meeting in New Delhi on Tuesday to finalise the borrowing plan for October to March, two sources told Reuters.
"As we step into a new month, the market is brimming with various domestic and global macroeconomic indicators expected to sustain its momentum," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart. Technically, Nifty is trying to create a base around the 19,200 level, but it has to cross the 19,600 resistance level to resume its bullish momentum, Gour said, adding that above 19,600, one can expect a move towards the 19,650–19,700 zones. He sees the crucial support level at 19,191, followed by the next support at 18,888.
The domestic benchmark bond yield hit a near four-month high of 7.26% in August, tracking a rise in U.S. Treasuries, but eased as the month progressed.