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Policy▲ Bullish for Indian equities
RBI panel proposes 11.2% increase in states’ WMA limit to ₹67,839 crore
The brief
- Proposed aggregate WMA limit for states rises 11.2% to ₹67,839 crore
- Panel urged states to stagger market borrowing and avoid a fourth-quarter rush
- Staggered state borrowing may ease bond-supply pressure for Indian banks and debt investors
- RBI may shift govt borrowing towards shorter tenures in H2
- Govt keeps restraint, H2 borrowing pegged at Rs 7.86 lakh crore
- Lower borrowing plan signals tax buoyancy, offers relief for bond yields
- Centre cuts FY27 gross borrowing estimate to ₹15.99 lakh crore; H2 bond sales set at ₹7.86 trillion
- India lowers FY27 gross borrowing, to sell debt worth 7.86 trillion rupees in Oct-Mar