Debt Market Review

Indian sovereign bond was slightly down by 3 bps, on month on month basis, to close at 6.11% amid volatility, as the COVID-19 turmoil continues to roil markets. The fluctuations in yields was perpetuated by a host of factors including rate cuts by the Reserve Bank of India (RBI), fluctuating rupee and oil prices, OMO operations, surplus liquidity in the banking system and expectation of additional measures by the RBI to support the relief measures already taken by the government.

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Equity Market Review

Indian equity markets witnessed a sharp rebound in April, 2020 from four-year lows witnessed in March. The Reserve Bank of India (RBI) announced a slew of measures in mid-April to counter the ensuing economic downturn from COVID-19, with the Governor reinforcing the notion that the RBI will do “whatever it takes”. The RBI reduced the reverse repo rate by another 25 bps (after the 90 bps in end March) to 3.75% to further incentivize banks to lend.

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.