Morning Buzz: Onion traders strike in Nashik, FPIs trim exposure to government bonds and more

Traders in Nashik have also declared an indefinite strike. They said that the imposition of the tax would render Indian onions uncompetitive Image: Getty Images

Onion traders strike in Nashik, seek floor price for export duty  

Onion traders have sought a floor price for imposing export duty to bring about a level playing field. Traders in Nashik have also declared an indefinite strike. They said that the imposition of the tax would render Indian onions uncompetitive compared to those from Pakistan and Egypt. Mumbai APMC has also planned a strike on 24 August in solidarity.  

(Economic Times, Mint)

Power demand hits record high in August   

Power demand on 17 August hit an all-time high of 234 GW. This was on account of sultry weather as well as demand from irrigation. The August number was higher than the 221 GW number hit in May. Spot prices at IEX recorded an increase to Rs 9.2 per unit compared to Rs 5.1 per unit. August is expected to see dry spells in several parts of the country keeping power demand elevated.

(Economic Times)  

FPIs trim exposure to government bonds  

Global bond investors have started trimming their exposure to long-term Indian government bonds as the rout in the global bond market intensifies due to the belief that interest rates will remain high for longer. On August 18 the global holding of the 10 year 7.26 2032 government security was 5.37 percent of the total outstanding stock of 1.48 lakh crore down from 6.17 percent on June 19. With short-term dollar bonds yielding 5-5.25 percent, interest in emerging market bonds has dwindled.