Corporate bond issuances in India rose by 8 percent to reach 6.3 lakh crore rupees through October of the current fiscal year, up from 5.8 lakh crore rupees during the corresponding period of the previous fiscal year, according to research from SBI. Commercial paper issuances climbed 13 percent to 9.8 lakh crore rupees during the same timeframe, while scheduled commercial bank credit expanded by 16 percent and deposits grew by 2.6 percent on an annual basis.
The research noted that spreads between corporate bonds and government securities have shown mixed trends, with 10-year AAA bonds narrowing since August while 5-year bonds widened. Mutual funds attracted 1.33 lakh crore rupees into short-term instruments, reversing earlier outflows and signaling investor preference for shorter durations.
Despite foreign portfolio investors exercising caution toward emerging markets amid recent volatility, debt segment flows have remained positive, demonstrating confidence in government macroeconomic fundamentals and ongoing reforms.
The research noted that spreads between corporate bonds and government securities have shown mixed trends, with 10-year AAA bonds narrowing since August while 5-year bonds widened. Mutual funds attracted 1.33 lakh crore rupees into short-term instruments, reversing earlier outflows and signaling investor preference for shorter durations.
Despite foreign portfolio investors exercising caution toward emerging markets amid recent volatility, debt segment flows have remained positive, demonstrating confidence in government macroeconomic fundamentals and ongoing reforms.
