Stock markets in India are presently trading marginally higher. Sectoral indices are trading on a negative note with stocks in the oil & gas sector and healthcare sector witnessing maximum selling pressure.

The BSE Sensex is trading down 36 points (down 0.1%) and the NSE Nifty is trading down 2 points (down 0.01%). The BSE Mid Cap index is trading down by 0.5%, while the BSE Small Cap index is trading down by 0.4%. The rupee is trading at 63.65 to the US dollar.

In the news from the bond markets, as per a leading financial daily, the government said today that the 8% Savings Bonds Scheme is not closed and is instead been replaced by 7.75% Savings Bonds Scheme.

Reports had earlier said that the government will stop subscription for the 8% Savings Bonds Scheme, also known as RBI Bonds Scheme, with effect from January 2.

These Government of India bonds come with a lock-in period of six years and fetch a rate of interest of 8% per annum, compounding on a half-yearly basis. With bank deposit rates falling lately, the 8% Savings Bonds Scheme stood a preferred choice for those looking for a regular guaranteed income.

Speaking of bond markets, note that the bond market in India is witnessing a strong revival.

Foreign debt raised by Indian companies has surged ten-fold to US$ 41 billion in 2017. This is the highest ever infusion of foreign funds in the domestic debt markets in the last 15 years.

At US$ 23 billion, foreign investments in government securities and corporate paper took the cake. This was followed by dollar-denominated bonds that attracted around US$ 16 billion of foreign investments whereas funds of US$ 2 billion were mopped up by masala bonds. Masala Bonds are rupee-denominated borrowings by Indian entities in the overseas markets.

All this has made the Indian bond market flush with foreign debt investments lately, as can be seen from the chart below: