Post closing Report of Financial Market's 22/04/2021 ( BOND YIELD VS MARKET)

 

MARKETS                                                                             .       

INDICES	COUNTRY	OPEN	HIGH	LOW	CLOSE
Nifty 50	INDIA	14219.15	14424.75	14151.40	14406.15
Bank nifty	INDIA	30763.50	31834.50	30555.25	31782.60
Sensex	INDIA	47501.71	48143.16	47204.50	48080.67
Nifty mid 100	INDIA	23177.75	23487.75	23126.95	23432.65
Nifty small 100	INDIA	8132.40	8236.55	8118.10	8216

 

INDIA VIX (Volatility index) =23.02

 

COMMODITY AND  CURRENCY INDEX                                                                        .  

CRUDE OIL PRICE / BAREEL	4618
GOLD / 1 GM	47826
SILVER / KG	69185

 

DOLLER  $ 1 US = IN Rs.	74.95
EUR INR	90.20
GBP INR	103.92
JPY INR	0.69
AUD INR	57.84

IMPORTANT ACTIVITIES    (BONDS VS MARKET)

                                                 .                                                                    

 

What are the Bonds?

When companies OR Government want money for the long term then rather than going for a bank loan with limited period repayment conditions they prefer to issue BONDS to raise the money with a fixed repayment period of 10 yrs,15 yrs, 20yrs, etc.

While issuing bond they fix maturity period, token price / Bond, initial face value.

Why people invest in bonds?

If you compare returns of the bonds are slightly higher than bank FD lower than Equity Market, and mutual funds. and there are some bonds with which we can able to avoid GST payment on our income generated from bond-like nontaxable bonds. but if you consider safety wise bond will be ranked after bank FD

How we will claim our money back if something went wrong with the company?

So whenever something bad happens bondholders always have prior claims and equity holders always get the last preference so this is the safety pleasure always bondholders can enjoy. but still, bank FD have higher safety preference than bonds

 

How BONDS are related to the stock market?

Bonds are listed on Exchanges so we can able to trade those bonds freely and the Bond price will always vary depending upon demand and liquidity. we have different types of bonds like Fix rate bonds, Floating Rate, Zero interest rate, Climate bond, War bonds etc so depending upon requirement against company valuation they can able to issue bonds. if demand for the band is less then the price of the bond will get decreased e.g. if today one bond is trading around 1000 Rs and it went down to 990 Rs so with less value I’m getting the same returns as 1000 Rs so we can say bond yield is increased. and if that happened in the market people always like to choose the safe option for making money and they will sell off their holdings in the stock market and prefer to invest in bonds as they will get a price advantage. we can able to sell or buy these bonds from the open market but it always depends upon liquidity and demand for those asset class

 

 

IS there any safe option available to invest in BONDS?

YES, in BONDS there is covered bonds are available means those bond will get covered by a commodity so if anything bad happens to that company this covered commodity will pay off our invested money but you need to hold it for a given period. you can sell it in the open market but as I said it always depends upon demand and liquidity but after maturity you  can able to sell it and get your returns and investment back .sometime you can able to get returns up to 15 % per annum

 

So this is all basic information about BONDS and MARKET correlation

 

 

 

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