Desk note · industry · Debt markets / policy
Indian asset managers offloaded a net ₹5,100 crore of government securities in the three sessions after the Reserve Bank of India’s rate increase, adding to about ₹37,800 crore of sales between July and September as managers cut duration risk.
Reporting on 12 October 2026 said Indian mutual funds are preparing to sell more government bonds after the Reserve Bank of India raised its policy rate for the first time in nearly four years and signalled further tightening to fight inflation. Fund managers told Reuters they have already cut exposure to longer-dated gilts. In the three trading sessions immediately after the hike, asset managers sold a net ₹5,100 crore of government securities. That followed roughly ₹37,800 crore of net sales between July and September, about $4.5 billion in total. The five-year government bond yield topped 7.05%, up almost 70 basis points in two months, while the 10-year yield hovered near 7.35%, the highest in nearly three years.
When the central bank turns hawkish, bond prices fall and yields rise. Mutual funds that held long-maturity government paper face mark-to-market losses if they stand still, so many shift toward shorter corporate and ultra-short debt where carry is still attractive. Managers at SBI Mutual Fund, Tata Asset Management, Invesco, Axis, Aditya Birla Sun Life, and Bandhan described trimming duration, with some cutting weighted average maturity to under a year from far longer books. Heavy open market sales of bonds by the RBI last month also changed who absorbs supply. Households feel this indirectly through fixed-income fund NAVs and through higher borrowing costs as yields feed loan pricing.
If you own gilt or long-duration debt funds, read the portfolio maturity in the latest factsheet and expect volatility while the hiking cycle plays out. If you rely on bank FDs, rising market yields may eventually lift deposit rates, but banks often lag the bond market. Borrowers on floating home loans should already be repricing after the repo move; bond fund losses are a separate pocket of your balance sheet. Watch the RBI’s next open market operations, monthly debt fund flow data, and whether 10-year yields push toward the 7.20–7.40% range fund managers are citing.
Telecom / IPO
On 22 October 2026, exchange data showed Jio Platforms’ ₹30,213 crore issue had drawn about ₹3.73 lakh crore of total bids by late evening on Day 2, with the retail portion oversubscribed and market commentators citing diverted cash from other listed stocks during the book build.
SEBI / market infrastructure
On 22 October 2026, the Securities and Exchange Board of India proposed letting stock exchanges and depositories fund core-market and regulator-mandated initiatives without prior approval for each ticket, while keeping board oversight and financial safeguards and inviting comments until 12 November.
E-commerce / food delivery
On 22 October 2026, reporting said Flipkart is testing an internal food delivery product called Eat-in by Minutes with more than 8,000 employees in Bengaluru, using Ekart logistics as it prepares to compete with Zomato and Swiggy in meal delivery.
Digital trust / compliance
On 22 October 2026, eMudhra Ltd said its board will voluntarily withdraw from the global SSL/TLS certificate segment after a key-security incident on eight intermediate certificates, citing compliance cost and weak economics while stressing that other digital-trust services continue.
For informational purposes only. Not investment advice. Verify with filings and a licensed adviser.