Hopes Of RBI Rate Cut Keeps Private Borrowers Away From Bond Market
Indian corporates chose to reduce their corporate bond borrowings this week, with the Reserve Bank of India’s monetary policy due on December 7.
Market participants are factoring in a 25-basis-point cut from the Indian central bank as inflation declines and on expectations that the government’s demonetisation drive will dent economic growth, at least in the near term.
Indian companies raised Rs 4,200 crore from the bond market this week, a far cry from the Rs 10,300 crore figure last week, data compiled by Bloomberg showed. Yields across the 3-year to 5-year tenor also declined for the fourth consecutive week.
Adani Ports and Special Economic Zone Ltd. was the biggest borrower from the bond market this week followed by Bajaj Finance Ltd. and LIC Housing Finance Ltd.