India Inc's bond market fund raising grew 93% in November

In November 2016, corporate bond market saw a 93.46% year-on-year growth with 6994 companies raising Rs 1.38 lakh crore.

Corporate bond market, so far this year, has seen a growth of 30.35%, at Rs 8.96 lakh crore compared to Rs 6.87 lakh crore in the corresponding period of the previous year. 

Some companies that raised funding using bond were; Dewan Housing Finance with issue size of Rs 14,000 crore, Mahindra & Mahindra Financial Service at Rs 1000 crore, IndiaBulls Housing Finance at Rs 7000 crore and NHPC at Rs 7000 crore. 

To deepen capital markets, the market regulator on November 23, 2016, permitted FPIs to invest in unlisted corporate debt securities and securitised debt instruments with a ceiling of Rs 35,000 crore.

PM Narendra Modi's recent demonetisation move for tackling black money is also considered as a positive factor for bond markets. 

India Ratings believe that the bond market conditions have remained buoyant post the government’s move to demonetise currency notes. It believes, increase in the deposit base under banking system will create more demand for government bonds and other high rated bonds in an environment of tepid credit demand. 

Additionally, benign retail inflation trajectory will keep aid investors’ appetite for bonds.