RBI governor’s hawkish commentary disappointed the bond market and resulted in yields rising by 5 bps to 7.09% levels. The RBI's emphasis remains on taming inflation. Markets will closely monitor the inflation for January which will be published next week, currently expected to be around 5.2%. Market participants believe Indian 10Y should trade in the range between 7.05 to 7.15. Unless the inflation number is higher than market expectations, it is unlikely that the Indian 10Y will move above 7.15.
Indian Debt
- The interbank call money rate ended at 6.85%
- Indian Government 10 Y bond yield moved up by 5 bps during the week as RBI governor did not give any clear indication about the rate cut cycle.
- The yield of the 10-year benchmark 7.18% 2033 bond ended at 7.08%
| Debt Market Indicators |
Close |
Last week Close |
| Repo rate |
6.5 |
6.5 |
| 91 Days Tbill |
7.01 |
7.02 |
| 364 Days Tbill |
7.11 |
7.15 |
| 1 Y CP Rate |
8.00 |
8.00 |
| 1 Y CD Rate |
7.85 |
7.90 |
| 5 Y Gilt |
7.02 |
6.98 |
| 5 Y Corp bond |
7.92 |
7.95 |
| 10 Y Gilt |
7.08 |
7.03 |
| 10 Y Corp bond |
7.75 |
7.75 |
Market Trends
- Indian rupee depreciated by 10 paise against US dollar during the week as the India equity market saw outflows of 5944 crs during the week on selling from FIIs
- US 10Y moved up by 25 bps after Fed chairman's speech as the market anticipated rate cuts in the US will take time to come.
- Brent started trading above the psychological level of $80 per barrel as Israel's Prime minister rejected a ceasefire proposal from Hamas.
| Indian Indices |
Close |
Last week Close |
| Sensex |
71,410 |
72,157 |
| Nifty |
21,727 |
21,866 |
General News
- RBI in its bimonthly MPC meeting kept the rate unchanged at 6.50%. The RBI Governor mentioned in his speech that bringing inflation down is the key focus right now.
- The inflation rate for Jan 2024 will be published on 12th Feb 2024.
| Global Markets |
Close |
Last week close |
| DJIA |
38,726 |
38,519 |
| NASDAQ |
15,793 |
15,361 |
| US 10-Y |
4.14 |
3.89 |
| USD/INR |
82.96 |
82.86 |
| Brent |
81.64 |
79.00 |
Primary Issues
| Issuer Name |
Ratings |
Tenor |
Issue Size +
Green Shoe (in crs) |
Open Date |
Exchange |
| Keertana Finserv |
ICRA BBB |
2 Years |
110+0 |
09-Feb-24 |
BSE |
| Suvita Real Estate |
ACUITE C |
14 Months |
105+0 |
09-Feb-24 |
BSE |
Top Traded Bonds
The following are the most actively traded bonds on the Standard Market from 5th Feb to 9th Feb:
| ISIN |
Security Name |
Volume (Cr) |
Avg. Yield (%) |
| INE261F08EG3 |
7.68 NABARD 30APR29 |
3,322 |
7.67 |
| INE261F08DD2 |
5.27 NABARD 29APR24 |
2,442 |
7.91 |
| INE040A08708 |
6.00 HDFC BANK 29MAY26 |
1,685 |
8.10 |
| INE178A08029 |
5.78 CHENNAI PETROLEUM CORPORATION LTD. 17JUL2025 |
700 |
7.65 |
The following are the top-traded odd lot bonds from 5th Feb to 9th Feb:
| ISIN |
Security Name |
Volume (Cr) |
Avg. yield% |
| INE06E507165 |
10.57 HELLA INFRA MARKET 23NOV25 |
27.89 |
14.82 |
| INE572J07653 |
10.11 SPANDANA SPHOORTY 18DEC25 |
20.71 |
11.67 |
| INE248U07EY4 |
9.03 360 ONE PRIME 28JAN26 |
20.07 |
9.40 |
| INE062A08413 |
8.34 SBI PERP 19JAN34 C |
18 |
8.14 |