Dharamraj Dhutia

The drop in India's benchmark bond yields and swap rates signals the central bank may address weaker-than-expected economic growth by easing monetary policy, which, traders say, will likely be via a lower cash reserve ratio than by interest rate cuts.

Amundi Investments, Europe's largest asset management firm, plans to allow its clients to increase exposure to Indian debt through its recently launched funds focusing on the country's fixed income market, executives at the asset management firm said.

Indian billionaire Gautam Adani has been indicted for fraud by U.S. prosecutors and arrest warrants issued for him and his nephew for their alleged roles in a $265 million scheme to bribe Indian officials to secure power-supply deals.

Foreigners that sold Indian government bonds in November may not be in hurry to return as pressure on the local currency is expected to continue and as interest rate cuts seem to be delayed, ANZ India's treasurer said.

India's Navi Finserv has withdrawn a planned bond sale scheduled for bidding on Monday, the firm said, days after the country's financial regulator barred the non-bank finance company (NBFC) from issuing new loans.

Lower-rated Indian companies and first-time borrowers will benefit the most from the market regulator's recent move that will provide liquidity into the corporate bonds market, three merchant bankers said.

India's Adani Green Energy cancelled its plan to raise funds via U.S. dollar-denominated bonds after investors placed bids at higher yields than the company was willing to pay, two bankers directly involved in the deal said late on Tuesday.

India's benchmark bond yield may drop to levels last in November 2021 by the end of this financial year, on strong foreign inflows and central bank rate cuts, a fixed income official from TT International Asset Management said.

India's central bank is likely to be less hawkish than its previous monetary policy following softer domestic data, although a change in stance or rates is unlikely at its policy meeting this week, an economist with DBS Bank said on Monday.

India's Adani Airport Holdings has raised 19.5 billion rupees ($232.72 million) via the biggest domestic bond issue since U.S. short-seller Hindenburg Research accused its parent group of improper use of offshore tax havens and stock manipulation.