Policy▼ Bearish for Indian equities
Government cuts FY27 borrowing plan, but bond market remains wary: SBICAPS
The brief
- Strong direct tax collections and lower gross borrowing offer some comfort
- Inflation risks and rising State borrowings could keep yields elevated
- Elevated yields can pressure Indian banks and rate-sensitive stocks
- GST 2.0 and further reforms: The path to stronger state finances runs through a wider tax base
- GST 2.0 may replace arrests with fines for tax defaulters
- GST revenue rises to ₹2.03 lakh crore in September but share of domestic sources falls to all-time low
- GST state-wise collection September 2026: Assam jumps 88%, UP 18%; Tamil Nadu falls 5%
- September GST collections rise 14.7% to ₹2.04 lakh crore