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RBI measures may lift Indian bond demand as rupee stays under pressure

2026-10-12 · 1 source · Economic Times Markets

In short

Indian companies may go back to the bond market after recent central bank steps to support the rupee. The summary says high overseas yields and expensive hedging have made borrowing harder, and some firms may revisit bond sales they had canceled.

This could make bonds more attractive than bank loans for some borrowers. Which companies will issue debt again is not stated in the available reporting.

What the reporting says

Indian companies may re-enter the bond market after recent central bank measures aimed at stabilizing the rupee, according to an Economic Times Markets summary. The piece says high overseas yields and higher hedging costs have limited borrowing options, and some issuers may revisit bond sales previously canceled because yields were too high. The immediate consequence is a possible revival in local debt issuance, but which companies will return is not stated.

Why it matters

Indian companies may re-enter the bond market after recent central bank measures aimed at stabilizing the rupee. The summary says overseas borrowing has become less attractive because yields are high and hedging costs have risen, while bank borrowing costs are also increasing. That could push some issuers back toward local bonds, including offerings they previously canceled, but no specific company or issuance is named.

Touches: Markets, Currency, Economy, Banking

Sources