India planed to sell 150 billion rupees ($2.22 billion) in gold bonds in the fiscal year ending on March 31, as it sought to wean investors off physical gold and contain the outflow of foreign exchange spent on imports.
The price of gold rose 4 percent so far in 2016, while India's benchmark NSE index fell nearly 7 percent.
“Given the correction in the stock market, interest is shifting in favour of gold," said Harish Galipelli, head of commodities and currencies at Inditrade Derivatives and Commodities.
"Investors are looking for safe-haven assets. This tranche will receive better response than the first tranche", he added.

Latest News  from Business News Desk