Why HNIs are falling in love with govt bonds

Hi there, Good Morning. Welcome to ETMarkets Morning, the show about money, business and markets. I am Nikhil Agarwal. Let's start with the headlines first.

- Adani Total forays into electric mobility infrastructure
- PVR, Inox announce merger
- Two-day nationwide strike likely to hit essential services

Now lemme give you a quick glance on the state of the markets.

Asian stocks fell Monday as Russia’s war in Ukraine grinds into a second month and the risk of an economic downturn from tightening US monetary policy hangs over markets. Shares lost ground in Japan, while S&P 500 and Nasdaq 100 contracts retreated, signaling a pause in the global rally in equities from the lows sparked by the conflict.

Elsewhere, the yield on 10-year Treasuries was at 2.47%. A gauge of the dollar pushed higher. Oil prices fell more than $3 in early trade on prospects of a drop in fuel demand in China after authorities in Shanghai said they would shut the country's financial hub for a COVID-19 testing blitz over nine days.

That said, here’s what is making news.


The benchmark Nifty is likely to find support at 17,000 this week, and a sustained move above 17,350 can take the index higher, possibly to 17,500 levels, said technical analysts. Investors should look to buy the dips until 16,900 levels are breached on the downside on the Nifty, said analysts.

Government bonds with long-term maturities are finding takers among some rich investors who are looking for safe debt instruments that are liquid and more tax efficient. Financial planners say these investors are buying sovereign papers that mature 25 to 40 years from now and would fetch them returns of 7.25-7.35% annually.


About 60% of the country's top 500 stocks are trading below their 200-day moving average (DMA) - a long-term trend indicator. When a stock or an index trades below its 200-DMA, it is said to be in a bearish trend and vice versa. Out of the Nifty-500 index constituents, around 300 were trading below their 200-day moving averages on Friday.



NOW Before I go, here is a look at some of the stocks buzzing this morning...


Adani Total Gas Ltd, a joint venture of Adani group and French energy giant TotalEnergies SE, has forayed into the electric mobility infrastructure sector by launching its first EV charging station in Ahmedabad.

The war for instant grocery delivery is going to intensify with Reliance Retail going to enter the segment with its JioMart platform.

Bharti Airtel has entered into an agreement to acquire over 7 per cent stake in Avaada KNShorapur for Rs 1.74 crore as cash consideration, the telecom company said in a regulatory filing on Sunday.

India’s leading multiplex chain, PVR, will merge with INOX Leisure, the second biggest, to create the country’s largest film exhibition company — with 1,546 screens in 341 properties across 109 cities.


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That’s it for now. Stay with us for all the market news through the day. Happy investing!