Stock Market Impact: Increased retail participation and higher corporate bond yields (7‑14%) relative to 10‑year G‑Sec (7.10%) may attract funds from equities, potentially boosting bond market liquidity and influencing market sentiment.
Listed Companies and Sectors: 1,924 companies issued bonds in FY25, up from 1,659 in FY24, showing broader corporate financing via debt across multiple sectors.
Investment Flows: International investors (e.g., JP Morgan, Bloomberg, FTSE) are monitoring the market; potential inclusion in global bond indices could raise foreign portfolio investment.
Interest Rates, Inflation, and Liquidity: RBI repo rate unchanged at 5.25% (Feb 2026 review) after 125 bps cuts in 2025; 10‑year G‑Sec yield ~7.10%; corporate bond yields 7‑14% offering higher returns.
Fiscal or Monetary Policy: RBI’s Retail Direct platform and SEBI’s Online Bond Platform Provider framework have lowered entry barriers (minimum investment down to ₹10,000) and digitised access, supporting policy goals of broader financial inclusion.
