Phoenix Festival Weekend Dhamaka: Vipul Goyal And Rajesh Krishnan To Perform Live At At Phoenix Mall Of Asia, Bengaluru

* Experience an unforgettable evening of laughter, music and nostalgia with two much-loved performers

Phoenix Mall of Asia, Bengaluru is all set to host an evening of laughter and music featuring stand-up comedian Vipul Goyal and celebrated Kannada playback singer Rajesh Krishnan on Saturday, 10th October 2026. From sharp observations on everyday life to timeless Kannada melodies, the evening brings together two distinct forms of entertainment for audiences in the city.

Known for his clean and relatable humour, Vipul Goyal has won audiences with his sharp take on everyday situations, Indian families, social media, and daily life quirks. An IIT Bombay graduate and the star of Humorously Yours, Vipul has built a strong following with his observational comedy, turning familiar experiences into stories and punchlines that audiences can easily relate to.

Rajesh Krishnan is one of the most admired voices in Kannada playback music, known for his soulful voice and memorable melodies. With a repertoire spanning romantic songs, evergreen classics, soulful tracks, and energetic numbers, he continues to resonate with audiences across generations. His live performance will feature his much-loved songs with a full live orchestra, bringing the magic of Kannada music to life.

Don’t miss an evening of laughter, music, and nostalgia as Vipul Goyal and Rajesh Krishnan take the stage at Phoenix Mall of Asia, Bengaluru. Grab your tickets now on BookMyShow for an evening you would not want to miss. 

California Pistachios Invites India To Make Chai Time Better

* With Pistachios Through “The Better Snack” Marketing Campaign

The latest campaign moves pistachios beyond festive consumption, bringing their crunch and taste to everyday snacking occasions.

Wonderful® Pistachios, the world’s largest grower and processor of pistachios and distributor of California Pistachios, has launched the latest edition of “The Better Snack” marketing campaign in India, building on the success of its earlier campaigns. The Better Snack aims to expand pistachios beyond festive and seasonal occasions, bringing them into everyday snacking, with chai time taking centre stage as a key moment to enjoy the crunch and taste of pistachios.

The campaign features high-impact out-of-home (OOH) and print across Mumbai, Delhi, Bengaluru, Hyderabad, Chennai and Kolkata, with prominent outdoor sites including the Bandra cluster in Mumbai and Golf Course Road of Gurgaon. Digital creators will bring The Better Snack to life through relatable, everyday snacking moments, highlighting pistachios as a fun, tasty and high protein option across a variety of snacking occasions. Through a collaboration with Blinkit, the brand will also make it convenient for consumers to discover and purchase California Pistachios.

Shail Pancholi, Spokesperson for California Pistachios in India, said, “Snacking is an integral part of everyday life in India, with people reaching for something to eat across a variety of moments throughout the day. With 'The Better Snack’ we want to make pistachios a more natural part of these everyday occasions- from chai breaks to work desks to unwinding with a screen, while offering the great taste, satisfying crunch and goodness of a nutrient-rich snack. We hope to encourage consumers to see pistachios as an easy, everyday choice.”

The campaign comes as Indian consumers become increasingly intentional about their snacking choices. According to the Farmley Healthy Snacking Report 2026, 86% of Indian snackers say protein is important when choosing snacks, while evening tea-time emerges as India’s top snacking occasion across age groups, city-tiers and lifestyles. With six grams of protein per 28 gram serving, California Pistachios are an ideal food for India’s consumers based on these market consumption trends. The report also uncovers a generational shift in snacking motivations: consumers aged 16-35 are more likely to snack to satisfy cravings, while those above 35 increasingly snack for an energy boost.

California Pistachios remains committed to supporting these evolving snacking habits by making wholesome snacking more accessible and encouraging healthier eating choices across the country.

About California Pistachios

California Pistachios are grown and distributed by The Wonderful Company, the world's largest vertically integrated pistachio processor and marketer located in California's Central Valley.

California Pistachios are Non-GMO, providing a smart, healthy choice for consumers around the world. Sun-ripened in the moderate Mediterranean climate of California, these distinctively green nuts pack taste and contain antioxidants and over 30 different nutrients. California Pistachios in India are available under leading brands and private labels at retail outlets, grocery stores, and online platforms.

For more information about California Pistachios, visit www.californiapistachios.com.

From Smartphones To Beauty: How Gen Z’s Inner Circle Is Shaping Different Diwali Shopping Journeys

* New Snapchat and GWI research reveals that there is no one Gen Z Diwali shopper, with planning, sharing, advice-seeking, and spontaneity varying significantly by category.

A smartphone, a beauty product, a festive outfit, and last-minute Diwali essentials may all be part of the same festive shopping basket, but Gen Z isn't buying them in the same way.

New research from Snapchat and GWI reveals that there is no single Gen Z Diwali purchase journey. Consumer technology emerges as a highly planned and advice-led category, beauty is shaped by research and social sharing, fashion combines advance planning with spontaneity, while quick commerce is closely tied to immediate household and festive needs.

One behaviour, however, appears across these different journeys: shopping is rarely happening in isolation. Gen Z is researching, sharing and seeking opinions as they navigate purchases, and the role of trusted friends and family isn't confined to categories traditionally considered social, such as fashion and beauty.

This is particularly evident in consumer technology. Despite being one of the most considered categories studied, 55% of Gen Z plan most of their consumer technology purchases in advance, while 52% seek advice from friends or family before buying.

For marketers, the findings point to a more nuanced Diwali shopper: different categories require different ways of showing up across the purchase journey, rather than one festive playbook applied to every consumer and category.

Technology: The considered, advice-led purchase

Consumer technology stands out as one of the most planned categories studied, with 55% of Gen Z saying they plan most of their purchases in advance.

But considered doesn't mean solitary. 52% seek advice from friends or family before purchasing consumer technology, demonstrating that trusted opinions matter even in a category typically associated with specifications, research, and comparison.

The journey also begins before Diwali. 50% research products, 46% ask others for opinions or advice, and 45% compare products or brands. During Diwali, behaviour shifts closer to transaction, with 47% making purchases and 44% looking for discounts, while 36% share products with others.

Smartphones are a major part of the technology shopping basket, with 71% of Gen Z buying or expecting to buy one for Diwali.

Beauty: The social, shareable purchase

Beauty and personal care follows a different path. While 53% of Gen Z plan most of their beauty purchases in advance, the journey continues through inspiration, research, conversations, and sharing.

Nearly half (49%) research ideas or inspiration before Diwali, while 45% seek opinions or advice.

Sharing is particularly prominent: 3 in 10 Gen Z consumers share beauty and personal care products with others before buying, while nearly 3 in 10 (29%) have sent photos or videos from a store to others.

Here, shopping becomes more collaborative, with other people becoming part of evaluating and validating what to buy.

Quick commerce: The need-state purchase

Quick commerce reveals another distinct Diwali shopping behaviour, driven more heavily by immediate festive and household needs.

61% of Gen Z primarily purchase festive essentials through quick commerce for their family or household.

Snacks and sweets lead the category at 74%, followed by puja essentials (65%), flowers and decorations (64%), diyas and candles (61%), and household essentials (59%).

Unlike the longer consideration journey associated with technology or the sharing-led behaviour seen in beauty, quick commerce is closely connected to what is needed for the home, and the people Gen Z is celebrating with.

Fashion: Planned, but open to spontaneity

Fashion and apparel remain the largest festive shopping category studied, with 68% of Gen Z buying or expecting to buy in the category.

But the journey sits somewhere between intention and impulse. While 46% plan most of their fashion purchases in advance, 49% say they combine planning with spontaneous purchases.

And planning begins early: 43% start planning their fashion purchases at least a month before Diwali, giving brands an opportunity to influence consideration well before the festival itself.

One Diwali, different journeys

Taken together, the findings show why there is no single Gen Z festive shopper and no single path to purchase.

Yagnesh Ravi, Ad Solutions Lead India, Snapchat, said, “The festive shopping funnel has changed. Discovery is still important, but for Gen Z, the journey increasingly continues through conversations with their Inner Circle, the friends and family they trust to share opinions, validate choices, and build confidence before they buy. Snapchat has always been built around real relationships, the friends and family people talk to every day, share moments with, and turn to for opinions. That is what makes the Inner Circle such a natural behaviour on Snapchat. During Diwali, for brands, the opportunity is not simply to appear alongside content, but to become part of the moments where people are discovering, discussing, and deciding what matters to them.”

Jason Mander, Chief Insight Officer, GWI, adds, “What this Diwali research shows is that there isn’t one way through that funnel. A smartphone, a beauty product, an outfit, and a last-minute festive essential are all approached differently. For brands, the opportunity is to understand the behaviours shaping their specific category and show up across the moments that matter, from discovery and research to conversations and decision-making. Understanding what Gen Z buys is only part of the picture, how they arrive at that decision matters just as much.”

The research was conducted by GWI in partnership with Snapchat, examining Gen Z festive shopping behaviours across fashion and apparel, beauty and personal care, quick commerce and festive essentials, and consumer technology and smartphones. 

New Case Study Traces 25 Years Of India’s Water Governance Journey: From Gujarat To The National Stage

* Study identifies four lessons for countries seeking to deliver water security at scale

A new case study, From Gujarat to India: Water Lessons for the World, documenting the evolution of water governance in Gujarat and India between 2001 and 2026, was launched at IIM Bangalore today. It draws lessons from the experience for policymakers and practitioners across the Global South. Daniel W. Smith, assistant professor at George Mason University; Nitin Bassi, fellow at the Council on Energy, Environment and Water (CEEW); and Parameswaran Iyer, former secretary of the Department of Drinking Water and Sanitation, Government of India, authored the study.

The study traces a 25-year journey that began under Chief Minister Modi in Gujarat in 2001, when recurrent drought and water scarcity led to a combination of large-scale infrastructure, groundwater recharge, conservation, improved water-use efficiency, institutional reform, and community participation. It describes Gujarat's water governance reforms between 2001 and 2014 as a laboratory for approaches later scaled nationally after 2014.

The scale of the transformation is reflected in both financing and access. Among other lessons learned, one key finding is that Union water-sector allocations increased from 0.8 per cent of the total Union budget in 2001-02 to 2.2 per cent in 2025-26. Across rural India, 464 million more people use safely managed drinking water today than in 2000, while rural household tap coverage has increased from 17 per cent in 2019 to over 80 per cent in 2026.

Gujarat’s response combined the Narmada-based water grid with institutions such as WASMO and village-level Pani Samitis, alongside large-scale water conservation and groundwater recharge. By 2013, the state had constructed more than 76,000 check dams under the Sardar Patel water conservation programme. The study traces how elements of this experience subsequently informed national initiatives including Jal Jeevan Mission, Jal Shakti Abhiyan, Namami Gange, Atal Bhujal Yojana, Per Drop More Crop and AMRUT. In 2019, the creation of the Ministry of Jal Shakti provided a consolidated institutional framework for drinking water, sanitation and water-resource management.

Shri Ashok K. Meena, Secretary, Department of Drinking Water and Sanitation, Ministry of Jal Shakti, said in his keynote: “Ensuring water for every citizen has been a priority for the Department of Drinking Water and Sanitation, Ministry of Jal Shakti. The lesson has always been: when water becomes a people’s mission, backed by strong institutions, steady investment, and Gram Panchayat ownership, change follows at scale. What began in one state has become a national commitment, and work will be relentless until safe, reliable water reaches every household in the country.”

A central conclusion of the study is that water security is as much a governance challenge as an engineering challenge. Infrastructure must be underpinned by the 4Ps: political leadership, public financing, partnerships and people’s participation. The seeds of these lessons were sown in Gujarat starting in 2001 and then scaled up across the country under Prime Minister Modi’s leadership.

Parameswaran Iyer, former Secretary to the Government of India and co-author of the study, said: “Delivering water at this scale comes down to a few things done consistently: political leadership and priority, institutions with one clear line of accountability, and communities that own and maintain their own supply.”

Looking ahead, the study highlights the opportunity to build on India’s achievements through reliable service delivery, water quality, source sustainability, groundwater recharge, greater water-use efficiency and a circular water economy based on treatment and reuse of used water.

Professor Gopal Naik, Chairperson, Senior Fellow and Jal Jeevan Mission Chair Professor at the Centre for Public Policy, IIM Bangalore, said: “IIM Bangalore is glad to host the launch of this case study. Delivering water at scale is one challenge, and sustaining it is another. This study brings together twenty-five years of experience from Gujarat and India to show what works and what comes next. Its lessons on governance, community ownership and ambition are practical ones. Building water systems is one task; sustaining them is another. Twenty-five years of evidence lets us ask what lasted, and why.”

Dr Nitin Bassi, co-author and Fellow, CEEW, said: “The next phase of water security in India will include the prioritisation of the circular water economy, including the optimal usage of treated used water, which is also a significant economic opportunity”

The study distils India’s experience into four lessons that countries across the Global South may find useful: lead with governance, not hardware; manage the water resource and the water service together; root initiatives in community ownership; and go big, matching ambitious goals with political will, financing and administrative capacity.

Daniel W. Smith, co-author and Assistant Professor at George Mason University, said: “India’s water journey offers lessons well beyond its borders. The central message is that water security at scale requires strong water governance. Countries across the world can learn from these governance lessons and adapt them to their own circumstances as they work toward universal and sustainable water security.”

The launch was followed by a panel discussion moderated by Professor Gopal Naik of IIM Bangalore, bringing together the study’s authors, water practitioners, and policymakers.

The study presents India’s experience as a source of practical lessons and approaches that countries can adapt and build upon in ways suited to their own circumstances. With its vast rural population, rapidly growing cities, climatic diversity and large-scale development needs, India offers a particularly relevant experience for countries across the Global South.

From Gujarat to India: Water Lessons for the World is authored by Daniel W. Smith, Nitin Bassi and Parameswaran Iyer and published by George Mason University and the Gates Foundation.

About IIM Bangalore

The Indian Institute of Management Bangalore (IIMB) is a leading EQUIS-accredited graduate school of management in Asia. It is recognized as an Institution of National Importance under the IIM Act of 2017. Located in India’s high-technology capital, IIMB’s role as India’s leading management educator is to guide the insatiable curiosity to learn by serving as a catalyst for purposeful change through teaching, research, practice and innovation for business, government and society. Over five decades, IIMB has built a legacy of excellence led by over 150+ distinguished faculty and a global network of over 25,000 alumni in leadership roles across various industries. Central to the Institute’s mission is a deep emphasis on internationalization, entrepreneurial thinking, social impact and lifelong learning.

For more information, please visit: www.iimb.ac.in/ 

Akshayakalpa Organic Expands High Protein Portfolio With Fresh New Offerings

* From High Protein Curd to High Protein Milk Coffee and Kesar Elaichi flavour, bringing protein to your everyday choices

Akshayakalpa Organic, India’s leading certified organic dairy brand, has expanded its high-protein portfolio with the launch of High Protein Dahi, a protein-rich take on an everyday dairy staple, alongside High Protein Milk – Coffee and High Protein Milk – Kesar Elaichi. The new range brings together familiar dairy formats, taste and convenient nutrition to make it easier for consumers to include more protein in their everyday diets.

Protein intake continues to be an important part of India’s nutrition conversation. According to an Indian Market Research Bureau (IMRB) study, nearly 73% of Indian diets fall short of daily protein requirements, highlighting the need for convenient and accessible ways to incorporate protein into everyday meals. Akshayakalpa Organic’s new range seeks to address this need through familiar dairy products made with fresh organic cow milk.

At the heart of the portfolio is High Protein Dahi, which delivers 28g of protein in every 400g tub. Priced at ₹99, it brings a protein-forward proposition to a product already embedded in everyday Indian meals. It can be enjoyed on its own or paired with regular meals, offering a simple way to add more protein without changing everyday eating habits.

The portfolio is complemented by High Protein Milk – Coffee and High Protein Milk – Kesar Elaichi, each delivering 25g of protein per 250ml serving. Made using ultrafiltered organic milk, which naturally concentrates milk protein without added protein isolates or powders, the ready-to-drink milks offer protein in familiar and indulgent flavours. The Coffee variant delivers a rich coffee experience, while Kesar Elaichi combines real saffron and cardamom. Both are lactose-free, low-fat and antibiotic-free, with no added sugar or stabilisers, and are priced at ₹110.

Commenting on the launch, Shashi Kumar, Founder and CEO, Akshayakalpa Organic, said, “Protein is an essential part of a balanced diet, but incorporating enough of it into everyday routines can often feel like a conscious effort. We wanted to make this simpler by bringing protein into familiar dairy formats that people already enjoy. With High Protein Dahi, we are taking an everyday staple and giving consumers an easy way to add more protein to their regular meals. Alongside our Coffee and Kesar Elaichi High Protein Milk, we are creating more choice around how consumers can include protein in their daily routines. This launch is an important step in our endeavour to make better nutrition more accessible, relevant and enjoyable.”

The new range is available through the Akshayakalpa app and the brand’s delivery network across Bengaluru, Chennai, Hyderabad, Mumbai and Pune.

India Sets Out Vision For Its 2036 Olympic And Paralympic Games Ambition Following IOC Announcement

Captured in two powerful words, “Rising Together”, the vision is one of converging ambitions to unlock enormous potentials: with the Games in India in 2036, a nation can accelerate its transformation through sport while the Olympic Movement opens its next great universal chapter.

The Indian Olympic Association welcomes the International Olympic Committee’s announcement, earlier this week, of the cities and countries participating in the process to select a future host of the Olympic and Paralympic Games in 2036. India’s Olympic and Paralympic ambition, centred on Amdavad, Gujarat, has been developed through close and constructive engagement with the IOC over the past eighteen months.

“Rising Together”, India’s vision, reflects the belief that 2036 can be a moment of mutual rise — when India’s transformation through sport and the Olympic Movement’s universal future come together through the Games.

For India, hosting the Olympic and Paralympic Games would be a generational opportunity to place sport at the heart of national life. The project is designed to act as a catalyst for a wider sporting transformation: inspiring millions of young people to move from watching sport to practising it, supporting healthier and more active communities, and making sport a driver of education and professional opportunities. By bringing the Games to India, the ambition is not only to stage a global event, but to help embed sport more deeply into everyday life and create a legacy that reflects India’s energy, youth and belief in the power of sport to transform society.

For the Olympic Movement, bringing the Games to India in 2036 would be a chance to enter a new era of universality, connecting the Olympic and Paralympic Movements with one of the world’s youngest, most dynamic and digitally connected populations. It would unlock a tremendous potential, opening the Games to more than a billion people, and bring new athletes, new audiences and new partners to the Olympic family.

When coming together, united in purpose, India and the Olympic movement can achieve a momentous event in their history, in a festival of life, color, celebrating India’s unmatched cultural diversity.

P. T. Usha, President of the Indian Olympic Association, said: “We are deeply honoured by the IOC’s recognition of India’s vision and aspirations for the Olympic and Paralympic Games in 2036, and proud to be part of an exceptional group of potential hosts for future editions of the Games.

For us, ‘Rising Together’ is not simply a slogan—it is a powerful commitment to unite India’s energy, ambition and diversity behind a shared Olympic dream. As we develop our vision for 2036, we want to create a Games that reflects the confidence of a young, dynamic and rising India, while contributing to the Olympic and Paralympic Movements’ ambition to reach new generations, new communities and new horizons around the world.

If we rise together—with our athletes, our people, our cities and the Olympic and Paralympic Movements—the possibilities are limitless. And when India rises, we want the world to rise with us. We look forward to continuing our exchange with the IOC and to present our ambition to the Future Host Commission for the first time at the end of October”

Dr. Mansukh Mandaviya, Union Minister of Labour & Employment and Youth Affairs & Sports, Government of India, said: “India’s ambition for 2036 is rooted in a simple idea: that sport can help shape the future of our nation. Hosting the Olympic and Paralympic Games would inspire millions of young Indians to participate in sport, strengthen healthier and more active communities, and create new opportunities for our youth across education, employment and social development. By bringing the Games to India, we can accelerate a sporting transformation that reaches every part of our society — and, in doing so, open a powerful new chapter for the Olympic Movement in one of the world’s most dynamic nations.”

About the Indian Olympic Association (IOA)

The Indian Olympic Association is the governing body for the Olympic Movement in India. Its mission is to develop, promote, and protect the Olympic Movement in the country and to encourage the development of high-performance sports. 

RBI Monetary Policy Quotes From Top Leaders Of DevX, Yes Bank, Hero Fincorp, Invesco Mutual Fund, Tata Asset Management

Post the announcement by Governor of the Reserve Bank of India, Sanjay Malhotra, on Wednesday October 7, 2026, here are the quotes by various top leader's from top listed companies on the Monetary Policy from DevX, Yes Bank, Hero Fincorp, Invesco Mutual Fund, Tata Asset Management.

Mr. Umesh Uttamchandani, Managing Director, DevX.

"A 25 basis point increase would signal that the RBI is prioritising price stability as inflation risks persist. Elevated crude and commodity prices, geopolitical uncertainty, rupee movements and tighter global financial conditions can add to imported inflation and put pressure on capital flows. A measured hike should help anchor inflation expectations while the RBI assesses how much further tightening is needed. With growth and domestic demand remaining resilient, the move is unlikely to materially alter the long-term trajectory of enterprise expansion, particularly as businesses continue to invest in India as a strategic market for technology, innovation and global operations.

For the commercial real estate sector, the immediate impact will be felt through the higher cost of capital and more deliberate investment decisions, particularly for businesses evaluating new office capacity and expansion plans. Costlier credit can also temper investment and consumption more broadly, and the extent will depend on how quickly the hike is transmitted through the banking system and on liquidity conditions. However, the underlying demand drivers for quality office space remain strong, supported by GCC expansion, enterprise growth and the continued evolution of India's services and technology ecosystem.

In this environment, managed workspaces can play an increasingly important role by allowing enterprises to scale their footprint with greater flexibility and lower upfront capital commitments. The ability to move into enterprise-grade, ready-to-operate offices also enables companies to align workspace investments more closely with their growth cycles.

At DevX, we continue to see demand from enterprises and GCCs that are looking for scalable, high-quality workspaces across established and emerging business markets. What will matter going forward is the pace and extent of any further tightening, and how businesses balance capital efficiency with their expansion requirements. Clarity on the policy path, alongside resilient growth and strong domestic demand, should continue to support India's office and managed workspace market.”

Indranil Pan, Chief Economist, YES BANK

“As expected, with the uncertain geopolitical developments that have kept oil prices elevated and given that the inflation numbers have registered an upward trend, it was prudent for the RBI to have started its hiking journey. The increase in the growth outlook indicated that the fear of growth sacrifice due to a rate hike cycle is now low. A bit surprising was the change in stance to ‘calibrated tightening’, despite an acknowledgement that currently there are ‘limited signs of supply-side pressures getting embedded in pricing behaviour’. Further, the RBI did not find any significant demand-side pressures while, in the same breath, acknowledged that credit growth was high. The ‘calibrated tightening’ was explained to mean that the future trajectory of rates is a pause or a hike. All policies remain live; a December hike of 25 bps is a certainty now. The RBI will continue to remain data-dependent and factor in the breadth of inflation pressures in the months ahead to determine the cumulative dose of hikes. Given that the RBI now sees the Q1FY28 inflation print at 5.6%, a total of 100 bps may be needed in this cycle.”

Abhimanyu Munjal, MD & CEO - Hero FinCorp

“The RBI’s decision to raise the repo rate by 25 basis points is a measured response to the evolving macroeconomic environment. Elevated crude prices, geopolitical uncertainty and tighter global monetary conditions have increased inflationary pressures, even as the Indian economy continues to demonstrate resilience.

For NBFCs, higher rates will have an impact on funding costs, making disciplined pricing, a diversified funding mix and prudent underwriting even more important. At the same time, underlying credit demand remains healthy. We therefore see this as an environment for calibrated, quality led growth, balancing opportunity with risk & profitability."

Vikas Garg, Head- Fixed Income, Invesco Mutual Fund

Amidst an elusive resolution of the West Asia conflict and a weaker monsoon, the MPC joined global central banks in delivering its first 25 bps rate hike, in line with market expectations. The FY27 growth projection was raised to 7.1% on resilient domestic consumption. The FY27 inflation projection also inched up by 20 bps to 5.20% on elevated food and fuel prices and a broadening of inflationary pressure. Given these growth-inflation dynamics, the policy stance was changed from "Neutral" to "Calibrated tightening", though by a split 4-2 vote, signalling more rate hikes to come. The absence of any announcement on liquidity tools to absorb excess market liquidity keeps the market guessing. At least the risk of a CRR hike and MSS is out for now, and absorption will be left to regular tools like VRRR, FX buy/sell swaps and OMOs.

Overall, the policy was more hawkish than expected because of the stance change. Given that average inflation is expected to be ~5.8% over the next three quarters, it could force another 2-3 rate hikes over a period. Nonetheless, the rate trajectory will depend heavily on crude oil prices, which could shift the policy path in either direction. The market had largely priced in this hike, but yields are marginally up on the stance change. While volatility may remain high, led by global factors, absolute yields on corporate bonds look fairly priced from a risk-reward perspective.

Amit Somani, Deputy Head - Fixed Income, Tata Asset Management

RBI MPC unanimously decided to kick-start rate hike cycle by increasing repo rate by 25bps to 5.50%, in line with market expectations. The policy stance has been changed from Neutral to Calibrated Tightening signalling more hikes. After overwhelming response to FCNR flows and consequent increase in banking system liquidity, no announcement of regulatory measures to suck-out liquidity is a positive. Tighter global financial condition along with higher bond market yields globally also played on tightening cycle.

CPI Inflation has been revised higher from 5.0% to 5.2% for FY27 on account of monsoon deficit, persistent higher crude oil and commodity prices. Importantly, inflation over next 3 quarter is likely to remain substantially elevated towards higher range of Inflation band around 5.8%.

GDP outlook has been revised higher from 6.7% to 7.1% for FY27 on account of Q1 GDP growth surprise as well as sustained Government’s thrust on infrastructure and higher credit growth well into Q2.

Policy tone sounded more cautionary on Inflation generalization than Growth outlook, giving it a hawkish tilt.

RBI seems to keep ample banking system liquidity to support economic activity as no regulatory announcement came in to suck-out liquidity. We expect RBI will likely manage surplus liquidity conditions through existing toolkit. This should keep overnight rate around the policy corridor.

Given that policy outcome was largely in line with market expectations, we believe short term rates are likely to remain stable with adequate liquidity prevailing in the banking system. We expect 3-6 month CD rates to continue to trade around 6.60-7.00% levels while 1-year CDs to trade around 7.50%-7.75%, expecting continuing rate hikes over next couple of policies. Long-term rate are likely to settle higher with 10-yr G-sec expected to trade in 7.20%-7.40% range.

Beyond domestic monetary policy, global bond yields and geopolitical risk will continue to drive short term as well as long term yields.