New Delhi: Corporate bond issuances increased 8 per cent year-on-year (YoY) to Rs 6.3 lakh crore till October this fiscal (FY26) from 5.8 lakh crore in the same period a year ago (FY25), SBI research said in its report on Sunday.
Meanwhile, commercial papers (CP) issuances also increased by 13 per cent YoY to Rs 9.8 lakh crore during the same period, as compared to Rs 8.6 lakh crore.
All scheduled commercial banks (ASCB bank) credit also increased 16 per cent YoY during FY26 (till October), while on a year-to-date (YTD) basis, the credit growth has been 6.3 per cent.
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On the deposit front, according to the report, the YoY growth during FY26 (till October) is 2.6 per cent, while on a YTD basis, deposit growth has been 7.1 per cent, according to the report.
Bank credit growth was 11.3 per cent for the fortnight ended 31 Oct, while deposit growth increased to 9.7 per cent from 9.5 per cent during the same period.
The green shoots of growth in credit against lagging deposit growth call for more proactive liquidity management.
The spread between the 10-year AAA corporate bond and the government security (G-sec) has been falling since August. But for the 5-year bond, the spread with G-sec actually rose in October.
Similarly, the gap between the Repo rate and the weighted average rate of Commercial Paper (CP), which was negative in FY21, went up to 114 bps in FY25 and now stands at 90 bps in October.
In the same way, the spread between the Repo rate and 3-month Certificates of Deposit (CD) — also negative in FY21 — increased to about 83 bps in FY25 and is now 45 bps in October, the report noted.
Mutual Funds witnessed a gush of liquidity in short-term instruments during the last month, totalling Rs 1.33 lakh crore, a reversal of fortunes after a big outflow in September and a somewhat negative August before that, indicating flows are preferring short-termism.
The report highlighted that FPIs have been cautious on emerging markets in general, lately, as pangs of volatility rocked the flow of capital and investments.
“However, the flows in various debt segments have bucked the trend and remained in positive terrains for most months, vindicating their trust in GoI’s macro fundamentals and reforms being ushered in,” the SBI Research said.
–IANS
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Mumbai, Nov 16 (IANS) As the second quarter (Q2) earnings season almost gets over, domestic indicators such as services PMI, infrastructure output data and NDA’s government formation in Bihar post landslide victory will drive the market sentiment next week, according to market watchers on Sunday.
Globally, market mood will be shaped by key U.S. economic releases, including the minutes of the latest FOMC meeting.
“Additionally, the ongoing volatility in AI-linked stocks will remain a key factor to watch, given its potential to influence broader market sentiment,” said Ajit Mishra of Religare Broking.
This week, the domestic indices staged a strong rebound during the week, ending firmly in the green after the recent phase of weakness.
Despite volatility in the later sessions, which was mostly caused by conflicting global developments, sentiment was positive from the beginning and was bolstered by positive domestic cues.
With the help of lower GST rates and falling food prices, India’s retail inflation dropped precipitously from 1.44 per cent in September to 0.25 percent in October, which greatly boosted investor confidence.
Because of lower prices for non-food items and softer crude oil, wholesale inflation also fell into negative territory in October, falling 1.21%.
“Additional support came from strong macro indicators, including a 7 per cent YoY rise in net direct tax collections to over Rs 12.92 lakh crore, reflecting healthy corporate profitability and steady income growth,” Mishra said. Expectations of an NDA win in the Bihar elections also helped boost political sentiment and increase risk appetite in general.
Following the above-mentioned positive cues, both benchmark indices gained over one and a half per cent, with the Nifty closing at 25,910.05 and the Sensex settling at 84,562.78, the analyst said.
IT, pharmaceutical, and auto stocks led the recovery, while sectoral performance stayed generally positive due to declining inflation, steady demand patterns, and rising global sentiment.
The banking index, setting a new record high, was one of the week’s major highlights. The only industry to finish slightly lower was real estate, most likely as a result of profit booking after a robust previous run-up.
Furthermore, the India VIX closed at 11.9375 after dropping 4.94 per cent over the course of the week, suggesting less volatility and a more stable market environment.
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