{
  "id": 9943065,
  "title": "India’s bond market performed well, equities to become attractive again: RBI’s Poonam Gupta",
  "url": "https://urgent.news/2026/09/26/indias-bond-market-performed-well-equities-to-become-attractive-again",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-26T07:19:14.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/bonds/indias-bond-market-performed-well-equities-to-become-attractive-again-rbis-poonam-gupta/articleshow/134499695.cms"
  },
  "original_language": "en",
  "account": "In recent years, India's bond market has been performing exceptionally well, outperforming its historical track record and most other countries, according to India's Deputy Governor at the Reserve Bank of India (RBI), Poonam Gupta. This relative strength of the bond market can be attributed to the government's fiscal commitment and the projected sustained high economic growth rates, which are expected to further enhance fiscal outcomes.\n\nThe RBI's September Bulletin highlights that credibility in monetary policy and declining structural pressures on inflation have also played a significant role in bolstering India's bond market. The Economist has even acknowledged India's experience, stating that it demonstrates the importance of cleaning up public finances and allowing central bankers to focus on inflation.\n\nHowever, the equity markets have not experienced the same level of optimism as the bond market. Gupta attributes this to a comparatively more promising AI-led story in other economies, suggesting that the Indian equity market, which had a remarkable run from June 2022 to September 2024, is now being outperformed by other markets.\n\nDespite the current situation, Gupta remains confident that the promise of India's underlying real economy will eventually make its equities more attractive again, as has been the case historically. The country has traditionally maintained a small current account deficit (CAD) with a larger capital account surplus, resulting in a net positive balance of payments (BOP). The CAD as a percentage of GDP has been declining, which has contributed to the resilience of India's BOP.\n\nFurthermore, the CAD levels have remained significantly lower than the prudent thresholds typically expected for emerging market economies. Net services exports and remittances are significant structural strengths for India, helping to absorb the merchandise trade deficit and keep the CAD below 1% of GDP.",
  "summary": "India's bond market is exhibiting notable strength, outpacing its historical performance and standing firm against global trends. The Deputy Governor of the Reserve Bank of India highlighted the promising fiscal commitments that are bolstering market dynamics. Meanwhile, Indian equity markets have faced challenges, partially due to rapid advancements in AI abroad.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}