News reports last week said that high net worth (non-retail) money had flooded into the 7.35% tax-free NHAI (National Highways Authority of India) bonds while the retail portion, with a 25 basis point higher rate of interest, saw tepid demand. This can be interpreted in two ways. One, smart money expects interest rates to fall and is hence locking into a high tax-free return. Two, smart money expects stock returns to be muted and is therefore moving money into debt.
Got hooked to stock market in the bull run? With markets in red, can you stay invested, stand the real test?
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