CIO: Bond Inflows Worth $3 Billion Indicates Improvement in Macro Fundamentals

Foreign flows in Indian bonds have clocked over $3 billion in March, so far. This trend reflects improving macro fundamentals in the country, says Chief Investment Officer at Complete Circle.

He said, “Indian bonds received $3 billion-plus of foreign inflows in March so far. This is a positive sign implying macros are improving for India. A seasoned fund manager once told me – Always track bond markets and currency for sharper insights into equity.”

Chadha’s remarks came amid a sharp market rally. On March 25, Sensex was up 1,078.87 points to clock a six-week high of 77,984.38, while Nifty gained 307.95 points to end at 23,658.35. Buoyed by buying in banking, oil & gas stocks and optimistic foreign inflows, benchmark indices posted intra-day gains of more than 1.5%.

During the last six sessions, Sensex rallied by 4,100 points, or 5%, while Nifty surged by 1,260 points, or 5.5%. On March 21, Foreign Institutional Investors (FIIs) bought equities worth ₹7,470.36 crore.

Vikash Khemani, founder of Carnelian Asset Advisors reiterated the shift in market sentiment. He said, “Lot of naysayers got undue attention recently. Just see what 4 days of FII flows have done. Imagine what will 4 years of positive flow will do to Indian markets! Study Japanese Economic Miracle to get glimpse, which took Nikkei to 60 PE.”

While noting “intermittent corrections” and “bubbles” are part of the normal market cycle, Khemani added, “Those who call India expensive will keep missing or will be invested without peace! Best way to make money in India is remain invested for next 10 years. I have conviction, India will be one of the best markets in USD over next 10 years.”