Check the reality of the bond market: “Microsoft, Apple and Nvidia are larger than the India market,” says the expert

The gap between the revenues of Indian bonds and the United States has narrowed for a period of 10 years to its lowest point in more than two decades, decreased to 164 basis points (BPS), as American bond revenues increased amid fears of financial deficit. According to Bloomberg data, this is the smallest spread since July 28, 2004, when it reached 135 basis points. Currently, normative bonds return for 10 years 6.2496 %, while the US Treasury Return in the United States for 10 years is 4.5866 %.

However, the Sherfastava Akshat, founder and chief executive of Wisdom Hat, noticed that although the stock market in India has become global attractive, the bond market remains in its cradle compared to global standards.

The contrast, Shrivastava said that the total size of the bond market in India – including both government and companies – is approximately 2.5 to 3 trillion dollars, which is less than the market value of one American technical company. In contrast, the value of the American bond market is estimated at more than $ 50 trillion, and is approximately 40 % of the global bond market.

He highlighted that Microsoft ($ 3.24 trillion), Apple ($ 2.97 trillion), and Nvidia ($ 2.78 trillion) greater than the entire bond market in India.

Companies like Microsoft, Apple and NVIDIA, each of which is larger than the entire bond market in India.
– Microsoft: 3.24 trillion dollars
Apple: 2.97 trillion dollars
– Nvidia: 2.78 trillion dollars
India’s bond market is 5 % of our bond market. Shrivastava wrote on X. We do not compete. ”

He added that money managers in the United States do not think in India, like India. They are the India bloc with emerging markets (EMS). And make their decisions: whether if you put money in EMS or stay in advanced markets. Then comes the second layer of discussion: the amount of division of shares opposite Bond. This depends on reading macro units.

According to market analysts, the spread of narrowing among government bond returns in various countries may push foreign investors to withdraw their investments from the Indian market. This phenomenon usually occurs when the returning differentiation diminishes, leading to the return of money forward to their countries of origin from emerging economies.

So when global asset managers make allocation decisions, India rarely appears as an independent opportunity. Instead, it was assembled in an EM basket wider with countries like Brazil, Indonesia and South Africa.

Shrivastava concluded that “a long short story: We do not compete with the United States our markets are not deep enough or big enough.”

In a separate publication earlier today, the Cotak Oud, the founder and director of the Kotak Mahindra Bank, put a major shift in the scene of the global bonds: the spread of the spread of Indian bond returns and the United States for 10 years.

Kotak noted that this represents sharp pressure on the historical difference between the two countries. Historically, Indian bonds have provided much higher returns to compensate for high inflation, sovereign risks, and currency fluctuation. But this gap, which illuminates, indicates the dynamics of dynamics in global capital flows and investor morale.

Kotak added that more rapprochement – or even reflection – on the returns depends on the largest all -economy changes:

He said: “This depends mainly on relative inflation, risk, confidence, and liquidity for global and local investors in these two countries.”

He suggested that this could be a sign of maturity in India and improving the total basics, which may reshape how investors see risks and return in emerging markets.