India’s Bond Market Sees Strong Borrowing Activity Amid Key Economic Updates

India’s bond market remained active as states and corporates launched significant borrowing plans, while investors kept a close watch on key domestic and global cues.

State Borrowing Activity

On the state bond front, nearly ₹5 lakh crore is slated to be raised in the current quarter (January–March). The first round of auctions kicked off today, with nine states aiming to raise ₹30,100 crore.

In the secondary market, state-owned banks were active buyers, acquiring government securities worth around ₹9,250 crore. Analysts expect the benchmark 10-year gilt yield to trade in the 6.60%–6.66% range this week.

Market focus is on next week’s announcement regarding the potential inclusion of Indian bonds in the Bloomberg Global Aggregate Index. Experts say the move is largely priced in and unlikely to trigger volatility. Investor confidence has also been buoyed by S&P Global Ratings’ upgrade of India’s long-term sovereign rating to BBB in 2025.

Economic Indicators

The first advance estimates of GDP for 2025-26 are scheduled for release on January 7. These figures are anticipated to influence both the rupee and the bond market.

Corporate Debt Activity

On the corporate borrowing side, several companies have secured board approvals for debt issuance:

• Satin Finserv plans to raise ₹400 million via bonds maturing on July 7, 2027.
• Torrent Pharma seeks approval to raise ₹12,500 crore through non-convertible debentures (NCDs).
• REC has approved ₹1.55 trillion in NCD fundraising.
• JSW Steel is set to raise ₹5,000 crore via NCDs.
• Axis Bank plans a ₹35,000 crore debt raise.
• Bank of Maharashtra has approved ₹10,000 crore in infrastructure bonds for FY26.

Separately, Adani Enterprises recently launched a ₹1,000 crore bond issue, which was fully subscribed in just 45 minutes. The initial base issue of ₹500 crore was completed in a mere 10 minutes, highlighting robust demand in India’s bond market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.