Benchmark yields on Wednesday closed at 7.22%, six basis points lower than the previous close of 7.28%, as softer inflation trends locally as also in the US cheered the sentiment.
The sentiment was further buoyed after a finance ministry official said there is no plan to tinker with the borrowing calendar and the fiscal deficit target of 5.9% for FY24, would be met. There is no worry on growth as of now, he said.
India’s retail inflation for October rose 4.87% year-on-year, lower than the 5.02% y-o-y in September, easing for the third straight month. Importantly, core inflation moderated to 4.25%.
Inflation is expected to climb to 5.6% by December and thereafter remain in the range of 4.9 to 5.6% for the next two quarters.