RBI RATE CUT
Dynamic bond mutual funds: Investors supposed all-interest-rate investment has failed in current rate cut-cycle
Amid the bond market’s season of woes, dynamic bond funds appear to have badly miscalculated the payoffs from the rate-cutting cycle
Falling NII hurts private banks' profit growth, public peers do better
Private sector banks experienced a decline in net profit for the second consecutive quarter due to dwindling net interest income, while public sector banks continued their double-digit growth. Overall net profit growth for the sampled banks slowed to a four-and-a-half-year low, reflecting a deceleration in net interest income, which saw its first drop in over five years.
FPIs withdraw Rs 12,257 cr in first week of Sep on strong dollar, US tariff concerns
Foreign investors pulled out Rs 12,257 crore (USD 1.4 billion) from Indian equities in the first week of September, weighed down by a stronger dollar, US tariff concerns, and persistent geopolitical tensions.
GST reforms to set stage for next investment cycle, provide tailwind for growth in coming quarters and years: Sanjiv Bajaj
Sanjiv Bajaj hailed the government’s GST rate cuts as the biggest reform since 2017, calling it a major driver for demand, lending, and financial services. He expects festive spending, MSME growth, and housing finance to benefit, alongside expanded insurance coverage due to exemptions.
GST rationalisation could increase pressure on the oil and gas sector, says ICRA
The Goods and Services Tax rationalisation is set to impact various Indian sectors. Oil and gas may face increased production costs. However, consumer demand and producer sentiment are likely to improve. Renewable energy projects can expect reduced capital costs. The automobile industry anticipates a revival in sales. Rural housing will benefit from lower cement taxes.
Maruti Suzuki shares may climb 17% to Rs 17,000, says ICICI Securities citing two growth drivers
Maruti Suzuki shares: ICICI Securities sees strong auto demand revival driven by GST cuts and new launches, reiterates ‘BUY’ on Maruti Suzuki with a raised target of ₹17,000, implying 17% upside. The outlook is further supported by tax reliefs, rate cuts, and Pay Commission revisions.
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India bonds rise as fiscal worries ease, US peers up
Indian government bonds saw a slight increase. This is due to reduced worries about fiscal issues after tax changes. Also, higher U.S. Treasury yields boosted market confidence. The benchmark 10-year bond yield moved to 6.4814%. Market anticipates potential measures from the Reserve Bank of India. U.S.
India government bonds set to gain on fiscal relief, lower US yields to aid
Indian government bonds are likely to increase. This is due to smaller revenue loss from tax cuts. It has eased concerns about fiscal slippage. Falling US Treasury yields are providing support. The benchmark 10-year bond yield is expected to trade in a specific range. The Goods and Services Tax rates were cut to boost consumption.
Festive-season boost: Rate-cut transmission to get a push as banking gets Rs 62,000 cr
The banking system is set to receive a liquidity boost of ₹62,000 crore with the first phase of the CRR cut taking effect, injecting funds ahead of the festive season. This move aims to improve monetary transmission and stimulate economic activity, potentially leading to lower deposit and lending rates.
Consumption boost and GST reforms set to drive economic growth and sectoral gains: Sunil Subramaniam
India’s economic landscape is poised for a significant uplift following the government’s recent policy announcements aimed at boosting consumption and reducing GST burdens.
Explained: How PM Modi's Rs 48,000 crore GST gift impacts stock market investors
Prime Minister Modi's GST reforms, carrying ₹48,000 crore revenue implications, have sparked a market rally. The simplification of GST architecture, with rate reductions, is expected to boost consumption across sectors like automobiles and FMCG. Analysts project a significant GDP growth and increased corporate earnings, making investors optimistic about sustained market gains.
India bonds to rise as GST cut revenue loss lower than feared
Indian government bonds are poised for a relief rally as revenue loss from tax cuts on consumer items is lower than anticipated. The benchmark 10-year bond yield is expected to trade between 6.48% and 6.52%. Tax cuts, implemented to spur demand amid economic headwinds, are estimated to cost 480 billion rupees.
Banks urge RBI to issue fewer long bonds amid weak demand
Banks want fewer long-term bonds issued in the second half of fiscal year 2026. They prefer more short-term bonds. Demand for long bonds from insurers and pension funds is weak. State bond supply is high. This mismatch pushes borrowing costs up. The 10-year yield recently increased. Concerns about GST revenue shortfalls also contribute.
JM Financial turns bullish on consumption, bearish on banks & infra. Check portfolio details here
JM Financial has rebalanced its model portfolio, turning bullish on consumption sectors like autos, consumer, cement, internet, hotels, and real estate, while cutting exposure to banks, NBFCs, insurance, infrastructure, ports, and defence, citing fiscal constraints and weak credit growth as key concerns.
India bonds rise on hopes of support from authorities
Indian government bonds experienced a rise on Wednesday, fueled by optimism that both the government and the Reserve Bank of India would offer support following a recent selloff. The benchmark 10-year bond yield saw a decrease. Traders are hopeful the RBI will address concerns about mark-to-market losses, with discussions ongoing regarding the second half borrowing program.
Is it the right time to invest in gilt funds amid rising bond yields?
Recent bond yield spikes have created a tactical entry point for investors in gilt funds, which hold long-duration government securities. Experts believe the market is currently undervalued, presenting an opportunity for capital appreciation as yields potentially decline. However, analysts caution about risks like potential fiscal deficit increases and rising inflation, which could impact bond yields.
GST cuts lift market sentiment, IT gains on valuation play: Dhananjay Sinha
Stock markets rebounded after last week’s selloff, driven by GST cuts, festive demand expectations, and global partnerships. Dhananjay Sinha highlighted auto, FMCG, and consumer goods as key beneficiaries. The IT sector rally was attributed to sector rotation and Fed rate cut hopes, though outlook depends on future commentary and exports.
RBI to meet bond market this week to discuss second-half borrowing: Report
India's central bank will consult with bond market participants regarding government borrowing for the fiscal year's second half, amidst concerns about rising bond yields and potential treasury losses for banks. Discussions will include feedback on the October-March borrowing schedule and possible solutions to address current market conditions.
Unlocking tactical opportunities in a dislocated bond market: Axis MF
Despite a supportive macroeconomic backdrop—rate cuts by the Reserve Bank of India (RBI), an upgrade in India’s sovereign credit rating, and subdued inflation—bond markets have been experiencing significant dislocation, according to the latest Acumen note by Axis Mutual Fund Research.
PNB, Bank of India reduce lending rates in September 2025: Check revised MCLR rates here
Punjab National Bank and Bank of India have revised their MCLR, effective September 1, 2025. PNB reduced rates by up to 15 bps across tenures, while BoI lowered rates by 5-15 bps, except for the overnight tenure. These revisions may bring relief to borrowers with loans linked to MCLR, potentially lowering EMIs.
Crisil maintains India's FY26 GDP forecast at 6.5%, private consumption to steer growth
Crisil projects India's GDP to grow at 6.5% for fiscal year 2025-26. US tariffs and slowing global growth may impact exports. Private consumption is expected to drive growth, supported by a good monsoon and RBI rate cuts. GST reforms are anticipated after Diwali. The GST Council will meet in September to discuss these changes. Government maintains GDP forecast at 6.3-6.8%.
Wondering why RBI rate cuts haven't made your EMI bill lower? Herein lies the answer
The realities of the bond market, inflation expectations and fiscal uncertainties are complicating matters when it comes to rate cut transmission. Borrowers have been left waiting for relief as the intended benefits of the RBI's rate cut are not filtering through to the lending rates.
Global debt inflows set to rise as India’s credit profile strengthens: LIC MF’s Pratik Shroff
India's sovereign rating upgrade is poised to attract stronger foreign capital inflows into its debt market, enhancing its risk profile and yield attractiveness. This shift could lead to broader inclusion in international bond indices, narrowing yield differentials with US Treasuries. Fixed income investors may benefit from increased demand for longer-duration sovereign bonds.
What's next for the rupee after breaching 88 against the dollar?
The Indian rupee is under pressure, hitting new lows against the dollar, prompting concerns among importers and corporates. The RBI's potential response to the weakening currency is uncertain, with some believing they may allow further depreciation to support exporters affected by US tariffs.
Govt’s gamble on GST cuts: What do the bond and currency markets signal?
Markets reflect cognitive biases, interpreting events differently. Equity markets anticipate consumption revival from GST reforms, while bond and currency markets price fiscal and macro risks. Persistent FII selling and a weakening Rupee highlight underlying stress, challenging India’s macro stability despite robust fundamentals.
Pvt capex likely to rise 21.5% to ₹2.67 lakh crore in FY26: RBI
A Reserve Bank of India article forecasts a 21.5% surge in private sector capital investment, reaching Rs 2.67 lakh crore in 2025-26. This growth is propelled by strong macroeconomic factors and a potential policy rate cut. Indian firms are entering the fiscal year with improved financial health and diversified funding, fostering a conducive environment for investment, particularly in infrastructure.
Ajay Bagga says GST tax cuts could spark market rebound, boost demand
Ajay Bagga expects Indian markets may have bottomed out, citing minimal Q1 downgrades and signs of recovery. He sees the upcoming GST Council meeting and potential consumption tax cuts as critical catalysts for growth.
India's economy projected to grow 6.5% in FY26, but tariff tensions pose risks: Bank of Baroda
Bank of Baroda projects India's economy to grow around 6.5% in FY26, mirroring RBI's forecast, driven by strong Q1 growth of 7.8%. Manufacturing, agriculture, and services sectors are key contributors, supported by rising consumption and potential rate cuts. However, ongoing tariff negotiations pose a downside risk to the external sector.
Rate cuts by RBI ease corporate debt burden, sectoral gains uneven: BoB Report
The Reserve Bank of India's interest rate cuts have lowered borrowing costs, boosting debt serviceability for companies, though benefits are uneven. A Bank of Baroda report indicates that while overall sales and profit growth have occurred, the crude oil and BFSI sectors significantly influence these trends.
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