Investors should also look at long-term bonds: Dhawal Dalal

With the Reserve Bank of India (RBI) stressing the government's onus to maintain fiscal prudence in the coming Union Budget proposals, Dhawal Dalal, executive vice-president & head, fixed income, DSP BlackRock Investment Managers, tells Puneet Wadhwa he expects the central bank to hold rates for the rest of calendar year 2016. "We're asking investors to consider fixed income schemes that have average maturity between one and five years," he says. Edited excerpts:

Why the sudden disconnect between global bond markets and India? Could we expect a rally in Indian bonds this year?

Government bond yields in India have remained sticky, as local market participants might be focussing on near-term events such as Union Budget for FY17, demand and supply dynamics in the bond market as well as FII (foreign institutional investor) fund flows and their impact on the emerging markets (EMs).

Click here to read more>>