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Taking fresh steps to deepen debt markets, the Reserve Bank of India (RBI) Friday said that foreign investors in the International Financial Services Centre would be permitted to invest in sovereign green bonds.“A scheme for investment and trading in SGrBs (sovereign green bonds) by eligible foreign investors in IFSC is being notified separately in consultation with the Government and the IFSC Authority,” the RBI said in its statement on development and regulatory policies, released along with the central bank’s policy statement on Friday.At present, foreign portfolio investors (FPIs) registered with the Securities and Exchange Board of India (Sebi) are allowed to invest in sovereign green bonds under the various routes available for FPI investment in government bonds.Last month, the RBI announced the sale of sovereign green bonds worth a total of Rs 12,000 crore through two tranches in April-September. The government had started issuing sovereign green bonds in FY23. Proceeds of such bonds are used for environmentally sustainable projects.In November, the RBI said that sovereign green bonds would be counted as specified securities eligible under the Fully Accessible Route (FAR) for overseas investors.RETAIL INVESTORSThe RBI also said that a mobile application was being developed to improve ease of access for the central bank’s Retail Direct Scheme for investment in government securities.“The Scheme enables investors to buy securities in primary auctions as well as buy/sell securities through the NDS-OM (negotiated dealing system – order matching) platform. To further improve ease of access, a mobile application of the Retail Direct portal is being developed,” the RBI said.The scheme, which was launched in November 2021 provides access to retail investors to maintain gilt accounts with RBI and invest in government securities.

Varroc Engineering Ltd, part of the auto component space, has more than doubled investors’ wealth in the last one year and recent breakout from an inverse Head & Shoulder pattern has opened room for the stock to head higher.Short-term traders can look to buy the stock now for a possible target towards 600 levels, suggest experts.The stock rose from Rs 249 as on 31 March 2023 to Rs 564 recorded on 2 April 2024 which translates into an upside of 126% in a year.The auto component maker hit a record high of Rs 631 on 7th February 2024 but it failed to hold on to the momentum. It witnessed a decline towards 200-DMA on the daily charts and bounced back.The Supertrend indicator triggered a bullish sign on 2nd April 2024 which suggests that the trend could well be on the upside.The stock witnessed a steady uptrend after testing 200-DMA earlier in March. The stock has rallied more than 15% since March 2024.Tracking the momentum, the auto component maker gave a breakout from an inverse Head and Shoulder pattern and the neckline was placed at Rs 520 earlier this week. The stock closed at Rs 558 on 2nd April 2024.The Inverted Head and Shoulders pattern is a bullish reversal pattern characterized by three lows with the middle one (the head) being lower than the two outside ones (the shoulders), typically signaling a potential upward trend reversal.109056072“Varroc demonstrated a significant breakout above the neckline of the "Inverted Head & Shoulders" pattern at 520 with a robust bullish candle, signaling a potential shift from a downtrend to a positive trajectory,” according to a report authored by Rajesh Palviya, Senior Vice President of Technical & Derivatives Research at Axis Securities Ltd and his team.The heightened volume activity witnessed at the breakout further amplifies market participation, reinforcing the significance of the breakout.The stock's ability to maintain levels above key short and medium-term moving averages (20, 50, 100, and 200 days) signals a positive bias in its trajectory.“The daily Relative Strength Index (RSI) remains in bullish territory, holding above both its reference line and the 50 mark, reinforcing a positive bias in the stock,” highlighted Palviya.“Following the breakout from the Inverted Head and Shoulders pattern, the stock is anticipated to rally towards previous swing high, setting our targets at Rs 595-613 in the next 3-4 weeks,” he recommended.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

MUMBAI - Indian government bond yields stayed higher on Friday, with the benchmark yield touching a nearly two-month high, as the Reserve Bank of India maintained rates and stance as widely expected while sounding cautious on inflation. The yield on the benchmark 10-year was at 7.1069% as of 11:10 a.m. IST, after closing at 7.0934% on Thursday. It had hit 7.1217%, the highest since Feb. 14, after the policy decision. The monetary policy committee (MPC) held the key repo rate unchanged at 6.50% for a seventh straight policy meeting. Robust growth provides space for monetary policy to remain focused on bringing inflation down to the central bank's 4% target, Governor Shaktikanta Das said in his statement. The RBI expects the economy to expand by 7% in fiscal year 2025, unchanged from its earlier forecast, while it sees retail inflation at 4.5%, with volatile food prices seen as a continuing risk. While bull-steepening of India bonds looks to be a popular trade, the consistent repricing of Fed cuts could spill over into the RBI's reaction function and will be cyclically noisy, said Madhavi Arora, a lead economist at brokerage Emkay Global. Market participants will now shift the focus to the start of the government's borrowing programme for the current financial year, as New Delhi looks to raise 380 billion rupees ($4.56 billion) via multiple price-based auctions, which the RBI reverted to after a gap of three years. This auction includes 200 billion rupees of a new 10-year bond that will soon replace the existing benchmark, although it is not expected to command any significant premium. "Some caution on inflation means there are no hopes of an early start to rate cuts, which is getting reflected in prices, and cutoff for the new 10-year will now become the guiding factor," a trader with a primary dealership said.