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The Indian bond market remained largely range-bound through September 2025, with the 10-year benchmark government bond yield rising marginally by four basis points to close at 6.57%.In contrast, US Treasury yields eased, with the 10-year yield ending the month at 4.15%, following the US Federal Reserve’s 25 basis point rate cut — its first since December 2024.For Full Coverage on Bonds - Click HereAccording to Devang Shah, Head – Fixed Income, Axis Mutual Fund, the domestic market continues to find support from stable monetary policy and healthy liquidity conditions. The Reserve Bank of India’s (RBI) Monetary Policy Committee maintained the repo rate at 5.5%, adopting a neutral stance while revising FY26 GDP growth to 6.8% and lowering the average inflation forecast to 2.6%. The RBI also introduced measures to strengthen the financial ecosystem and encourage the internationalisation of the rupee.Banking system liquidity has stayed in surplus since March 2025, aided by government cash drawdowns and incremental infusions from earlier CRR cuts. This surplus is expected to remain comfortable through early 2026.Meanwhile, headline inflation edged up slightly to 2.1% in August, though food prices continued to moderate, keeping core inflation steady at 4.1%.The Fed’s rate cut has provided a supportive backdrop for Indian bonds, leading to a flatter yield curve. The government’s revised borrowing calendar—reducing long-term bond supply and increasing issuance in the 3–10-year segment—has also helped stabilise yields.Shah expects the RBI to deliver one more 25 bps rate cut in December, with a possibility of another in early 2026 if trade-related headwinds persist.“Most of the RBI’s rate easing is likely behind us. With inflation well within target, the outlook points to a ‘lower for longer’ interest rate environment,” Shah noted.He added that while duration plays have run their course, accrual strategies now offer better risk-reward opportunities, particularly in short-term (2–5 year) corporate bonds.Shah expects the 10-year G-Sec to trade between 6.30% and 6.65% for the rest of FY26. From an investor standpoint, Axis Mutual Fund continues to recommend short- to medium-term debt funds, complemented by tactical gilt allocations, to capture carry opportunities in a stable-rate regime.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Over the last six years, India’s REIT story has quietly but decisively come of age. What began as a niche, yield-seeking play for FIIs has evolved into a mainstream, DII-led equity product. Despite COVID, occupancy swings and a rising-rate cycle, India’s listed REITs have delivered strong, stable total returns. In doing so, they have deepened investor confidence and established their footing as a credible, well-regulated and lucrative asset class within Indian portfolios.Across most global markets, REITs have cap tables anchored by index funds and passive ETFs, alongside long-only active managers, pensions and insurers. SEBI’s recent move to reclassify REITs from hybrid to equity instruments marks a significant move to align this asset class with global standards, with clear implications for liquidity, investor participation, and valuation of this asset class.Mainstreaming REITs through equity classificationUntil now, REITs were seen as yield products, or quasi-debt instruments, but not fully comparable with listed equities due to the risk and return profile. By bringing them under the equity umbrella, SEBI has opened the door for both domestic and global institutional investors to treat REITs as part of their core equity allocation, a move that could fundamentally change how capital flows into this space.As a direct result, REITs are now set for index inclusion across key benchmarks. For instance, Embassy REIT and Knowledge Realty could join the Nifty 500 and Nifty MidCap 150, while Mindspace REIT, Nexus REIT and Brookfield REIT qualify across Nifty 500 and SmallCap indices. This marks an essential step toward mainstreaming the asset class, signalling that REITs no longer serve as peripheral instruments.Why index inclusion is a gamechangerFor REITs, index inclusion is critical because it ensures a steady base of demand through passive strategies while also putting them on the radar of active fund managers. However, the impact will be uneven given that not all indices carry equal weightage. Indices like the Nifty Midcap 150, SmallCap 50, and SmallCap 100 are widely tracked with a far greater AUMs than others, meaning actual inflows will cluster around those with higher institutional traction.Further, NSE’s methodology also considers the Average Daily Traded Value (ADTV) over six months. This ensures that only actively traded counters get included.Beyond flows: Why this reclassification mattersIndex inclusion is just one part of the story. The larger significance lies in how this reclassification addresses long-standing investor concerns.Valuation re-rating: Currently, majority Indian REITs trade at a discount to their Net Asset Value (NAV). With increased liquidity, a sector-wide re-rating is possible. Global precedent is instructive. U.S. REITs that once traded at discounts moved to NAV premiums in the early 2000s as the asset class matured.Liquidity: With index inclusion, REIT counters are likely to witness a step-up in secondary market activity, narrowing spreads and improving price discovery.Expanded investor universe: Domestic mutual funds, portfolio management services (PMS), and even global institutions can look at REITs as other equity holdingsThis shift could also spill over to hybrid funds. With REITs migrating into the equity basket, they may find additional headroom to participate in InvITs. This could unlock incremental flows for InvITs, further deepening the yield-oriented product universe.Looking aheadAs with all regulatory developments, the true test will now be in execution: whether the inflows materialise, whether valuations converge toward NAV, and whether the sector attracts long-term capital. SEBI’s move has laid some clear groundwork for REITs to emerge as a mainstream asset class, with the potential to reshape how both domestic and global investors engage with India’s real estate markets.(The author is Managing Director and Head, Equity Capital Markets, Avendus Capital)

French President Emmanuel Macron on Friday reappointed his outgoing prime minister, Sebastien Lecornu, back into that position, just four days after Lecornu gave his resignation.Both allies and the opposition had been hoping for a fresh face in government to help end months of paralysis over an austerity budget, but Macron instead reappointed Lecornu, 39."The president of the republic has nominated Mr Sebastien Lecornu as prime minister and has tasked him with forming a government," the Elysee Palace said.France has been mired in political deadlock ever since Macron gambled last year on snap polls that he hoped would consolidate power -- but ended instead in a hung parliament and more seats for the far right.Lecornu on X said after the Elysee announcement that he had accepted the mission "out of duty"."We must end the political crisis," he said.He pledged to do "everything possible" to give France a budget by the end of the year and added that restoring the public finances remained "a priority for our future".Macron, facing the worst domestic crisis since the 2017 start of his presidency, has yet to address the public.Lecornu's reappointment was met with indignation.Far-right National Rally party leader Jordan Bardella called it a "bad joke" and pledged to immediately seek to vote out the new cabinet.A spokesman for the hard left said Lecornu's return was a huge "two fingers to the French people".The Socialists, a swing group in parliament, said they had "no deal" with Lecornu and would oust his government if he did not agree to suspend a 2023 pensions reform that increased retirement age from 62 to 64.The French parliament toppled Lecornu's two predecessors in a standoff over cost-cutting measures.No 'presidential ambitions'Lecornu, a Macron loyalist who previously served as defence minister, after he quit agreed to stay on for two extra days to talk to all political parties.He told French television late Wednesday that he believed a revised draft budget for 2026 could be put forward on Monday, which would meet the deadline for its approval by the end of the year.But it was not immediately clear if this would require a fresh cabinet line-up to be announced by the end of the weekend.He warned on Friday that all those who wanted to join his government "must commit to setting aside presidential ambitions" for 2027 elections.Lecornu's suggested list of ministers last Sunday sparked criticism that it did not break enough with the past, and he suggested on Wednesday that it should include technocrats.The escalating crisis has seen former allies criticise the president.In an unprecedented move, former premier Edouard Philippe, a contender in the next presidential polls, earlier this week said Macron himself should step down after a budget was passed.But Macron has always insisted he would stay until the end of his term.The far-right National Rally senses its best-ever chance of winning power in the 2027 presidential vote, with Macron having served the maximum two terms.Its three-time presidential candidate Marine Le Pen has been barred from running after being convicted in a corruption case, but her 30-year-old lieutenant Bardella could be a candidate instead.

Mumbai: Multiple trustees of Tata Trusts are discussing revisiting a July resolution that said Tata Sons should stay private, in a move that could remove the main opposition to the conglomerate’s holding company getting listed on India’s bourses, in line with a mandate set by the country’s banking regulator three years ago. Tata Trusts is majority shareholder of Tata Sons. Minority shareholder Shapoorji Pallonji (SP) Group has been clamouring for a public listing for years, as the debt-ridden group could use the liquidity a listing would unlock. The move to potentially modify the resolution comes amidst divisions in the Tata Trusts that ET first reported on September 12. The change in stance comes days after Tata officials met home minister Amit Shah and finance minister Nirmala Sitharaman in New Delhi, where the government urged them to avoid further confrontation, maintain stability within the Trusts and not let differences impact operations of India’s largest business group. Whether the trustees favouring clearing the path for a Tata Sons listing can secure a majority decision is as yet unclear. There is a desire among trustees to avoid the show of a divided house, even as differences remain, persons close to the developments said. On Friday, SP Group reiterated its demand for a Tata Sons listing. Tata Trusts stands divided between two factions after four trustees — Darius Khambata, Mehli Mistry, Pramit Jhaveri and Jehangir Jehangir — broke precedent by voting to remove a fellow nominee trustee, Vijay Singh, from Tata Sons’ board on September 11. They then suggested nomination of Mehli Mistry to the board.124465695Business as Usual at Board MeetingThat was blocked by chairman Noel Tata, vice-chairman Venu Srinivasan and Vijay Singh, who remains a Tata Trusts trustee.Tata Trusts, which owns a controlling 66% stake in Tata Sons through the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust, had passed a resolution in July that Tata Sons should remain a privately held company, a stance that could now be revisited.On Friday, it was business as usual at the Tata Trusts board meeting, with an agenda focused on project funding and other regular matters, people aware of the details said.Growing pressure to find a viable solution for SP Group's exit — and to unlock value in the group holding company — has been reshaping internal discussions, said people with knowledge of the matter. “There is no animosity between SP Group and Tata Sons now,” one of them said.Tata Trusts did not comment.The development comes amid shifting power dynamics within Tata group, following the appointment of Noel Tata as chairman of Tata Trusts after the death of half-brother Ratan Tata last October.Tata Trusts chairman Noel Tata is married to Aloo Mistry, daughter of the late Pallonji Mistry and sister to Shapoorji and the late Cyrus Mistry. The Mistry family runs SP Group.SP Group Wants IPOSP Group on Friday clarified that its demand for going public — citing the need for greater transparency and accountability — was not in opposition to Tata Sons or Tata Trusts, but in alignment with the values of the founding families.“The public listing of Tata Sons is not merely a financial step — it is a moral and social imperative,” chairman Shapoorji Mistry said in a statement, adding that the move would serve the interests of stakeholders and align with the vision of Tata group’s founder. “Our position is not in conflict, but completely in consonance with, the ideals of (founder) Jamsetji Tata,” he said.SP Group has long pushed for a public offering by Tata Sons, especially since a legal dispute erupted between the two sides, following Cyrus Mistry’s ouster as Tata Sons CEO in October 2016. The group has used its entire holding in Tata Sons as collateral to raise money from private credit funds. The value of its stake in Tata Sons, based just on the latter’s holdings in listed Tata group companies, is more than ₹3 lakh crore ($35 billion).In April, SP Group formally urged the Reserve Bank of India (RBI) to back a public listing of Tata Sons, arguing that such a move would benefit all stakeholders. Struggling to service substantial debt, SP Group had also expressed its concerns to Tata Sons over not being informed about the company’s decision to apply to surrender its registration as a non-banking financial company (NBFC).Shapoorji Pallonji Group said a listing would unlock value for more than 120 million shareholders of listed Tata companies, indirect stakeholders in Tata Sons. In addition, Tata Trusts would also benefit through a more transparent dividend policy, allowing for sustained funding of philanthropic efforts, it said.It also cited regulatory obligations under the central bank’s scale-based framework for NBFCs. Under the rules, companies in the ‘upper layer’ category, such as Tata Sons, are required to go public by September 30. “We trust that the 30th September 2025 compliance timeline... will be viewed with the seriousness and sanctity that regulatory commitments deserve,” the SP Group statement read.Tata Sons has sought to deregister as a core investment company (CIC), hoping to avoid the mandatory stock market listing. The company controls companies such as Tata Consultancy Services (TCS), Tata Motors and Air India, and shifted from a net debt of ₹20,642 crore in March 2023 to a net cash surplus in 2024, partly due to its ₹9,300-crore TCS stake sale.Valued at over ₹15.8 lakh crore through its listed holdings alone, Tata Sons is seen as systemically important by regulators.RBI’s concerns extend beyond financial metrics to governance and transparency at the conglomerate’s helm. Government sources say officials are watching closely, balancing stability within SP Group with concerns over the growing concentration of control within Tata Trusts.