While there is scope for further easing, the question is whether there is a need to cut rates further, said panellists
Indian firms raised Rs 5.47 trillion through bonds in H1FY26 as lower yields drove strong Q1 activity; experts expect a rebound in the second half as banks re-enter the market
While Q1 saw robust issuance; Q2 was muted but outlook for Q3 is positive
PFC, NABARD and Solar Energy Corporation will raise funds via corporate bonds this week, tapping strong institutional demand ahead of RBI's October monetary policy review
Sebi is in talks with RBI to roll out corporate bond index derivatives as part of efforts to expand India's debt market and boost retail and foreign investor participation
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
RBI study signals a cautiously optimistic outlook for private investments in FY26, backed by healthier balance sheets, policy support, and rising capex momentum
The financial regulator for the special economic zone known as GIFT City has allowed global banks including HSBC Holdings Plc and Standard Chartered Plc to offer total return swaps for corporate bonds
Expect stable accrual-based returns rather than significant capital gains
Before the introduction of GST in 2017, corporate guarantees between related parties were not considered taxable under the service tax regime, unless there was a direct consideration involved
Corporate bond yields declined in FY25 but lagged G-sec yields, widening spreads; private placements led issuances and FPI limit usage dipped slightly, shows the RBI report
Budget reforms will redefine the financial system by fostering inclusion, competition, and efficiency. Financial institutions will benefit from enhanced market depth and improved liquidity
Tata Steel is likely to raise around Rs 3,000 crore ($345.6 million) through this bond issue
Syndicate bankers expect to see companies raising nearly $65 billion this week, and perhaps as much as $200 billion this month, in a bond issuance spree that is showing no sign of slowing
State Bank of India chairman C S Setty on Wednesday called for active participation by mutual funds and pension funds in the corporate bond market. "I am sure that a lot of corporates would like to issue bonds. I believe that if household/corporate savings are finding ways into these three investment categories, it is important that insurance and mutual funds also actively participate in the corporate bond market. I don't see that kind of participation actively coming in," Setty said. He said the pension/ mutual funds are making investments in AAA-rated bonds and this is not going to help deepen the corporate bond market. Setty said the corporate bond market has to come into financing of infrastructure as well as balance sheet funding of corporates. He said the investments are happening not only in equity but also in mutual funds, pension funds and insurance funds. "We have been debating on depth of the corporate bond market for many years. We could not achieve that depth," Setty
Issuers hold back, eyeing lower borrowing costs after Fed cut
Niti Aayog is working on proposals to deepen the corporate bond markets to achieve an alternative to bank finance for borrowers, the government think tank said in its Annual Report 2023-24. The corporate bond market, seen as an alternative to bank finance for borrowers, helps companies to raise long-term funds at competitive costs. "The vertical is in the process of developing a holistic research buttressed with key policy recommendations to deepen the corporate bond markets to achieve an alternative to bank finance for borrowers," it said. The report said corporate bond markets are an efficient cost-minimisation process for long-term funding and contribute significantly to financial stability. "It is a mechanism for supporting the bank for long-term lending against relatively shorter-tenor liabilities and helping the insurance companies and pension fund holders to diversify their portfolios while spreading or distributing the risks and managing the liquidity gap," it added. The .
HDFC's large fund raise stimulated the bond market, creating a momentum that continued into the subsequent months
To accommodate India's 10 per cent weight in the GBI EM index, HSBC said in a recent note, a reweighting will occur for other EM peers in the index, which will see a reduction in their weights.
Indian bonds have seen foreign inflows of nearly $10 billion over the last six months