positive
Recently
Debt markets cheer as RBI may lean dovish amid disinflation
Indian bonds rally as markets bet on a dovish RBI due to weak inflation and input‑cost pressures.
India’s bond yields are under downward pressure as investors increasingly price in a possible rate cut by the RBI. Soft CPI and WPI inflation prints, combined with deflation in wholesale food costs, fuel demand for sovereign debt.
Analysts argue that lower input-costs will ease borrowing stress for government and corporates, enabling durable lower-rate expectations. However, the risk of deflation hurting rural demand remains a counterweight.