Corporate fundraise slows to Rs 1.2 trn as yields harden in July-August

After raising Rs 3.4 trillion in Q1FY26, corporates tapped only Rs 1.2 trillion in July-August as rising G-sec yields and fiscal worries curbed bond market activity

After a buoyant April–June quarter (Q1FY26), when corporates raised over Rs 3.4 trillion from the domestic capital market on the back of softer yields driven by the RBI’s 100 bps rate cut and ample liquidity, activity slowed sharply in July and August. The hardening of government securities (G-sec) yields — following the imposition of tariffs on India by US President Donald Trump and the announcement of GST rate cuts that could increase fiscal pressures — weighed on the market. During these two months, corporates managed to raise only about Rs 1.2 trillion, as corporate bond yields rose in tandem with G-sec yields.