The bond market opened on a positive note today, with government securities trading firmer amid supportive policy measures and eased supply concerns. Market sentiment has improved significantly, driven by key developments in both government and corporate bond segments.

RBI Support Strengthens Government Bond Market

The Reserve Bank of India's ₹500 billion open market operation has provided substantial support to bond prices over the past week. This policy intervention has been widely discussed by market participants and continues to underpin the positive sentiment in government securities.

Additionally, reduced state government borrowing has further supported bond prices. The following table shows the significant reduction in planned state borrowings:

This lower-than-expected supply has eased market concerns and contributed to the firmer tone in government bonds.

PFC Launches Landmark ₹50 Billion NCD Issue

The corporate bond space is witnessing significant activity with Power Finance Corporation's launch of its non-convertible debentures public issue. The company aims to raise ₹50 billion through this offering, which represents the largest retail bond issue in nearly eight years if fully subscribed.

The issue details are structured as follows:

PFC is offering bonds across multiple maturity periods with attractive yields:

The issue has generated strong investor interest, reflecting the appetite for corporate bonds in the current market environment.

Regulatory Developments Support Market Outlook

SEBI is examining the possibility of introducing trading in bond derivatives, aimed at deepening India's corporate bond market. This regulatory initiative follows NITI Aayog's detailed report suggesting several measures to strengthen and expand the corporate bond ecosystem.

These developments indicate a comprehensive approach toward enhancing the bond market infrastructure and providing more investment avenues for market participants.

Market Focus on Inflation Data

Markets are closely monitoring India's consumer price inflation data, scheduled for release at 4 pm today (January 12). The CPI data is expected to influence both bond market movements and rupee performance in the near term, as investors assess the inflation trajectory and its implications for monetary policy.

Banks across India will observe extended closures this week, remaining shut for five days between January 12-17 according to the Reserve Bank of India's official holiday calendar. The closures will affect different states on various dates due to regional festivals and cultural celebrations.

State-Wise Bank Holiday Schedule

The Bank of India and other banking institutions will observe the following state-specific closures:

Upcoming January Bank Holidays

Beyond this week's closures, banks will observe additional holidays throughout January:

• January 18 & 25: Regular Sunday closures
• January 23: Birth anniversary of Netaji Subhas Chandra Bose, Saraswati Puja, Vir Surendrasai Jayanti, and Basanta Panchami in West Bengal, Odisha, and Tripura
• January 24: Fourth Saturday closure
• January 26: Republic Day (National holiday)

Banking Operations and Customer Services

Despite branch closures, customers can continue accessing essential banking services through digital platforms. ATMs, UPI payments, and online banking services will remain operational throughout the holiday period without interruption.

Regulatory Framework

The Reserve Bank of India publishes the official calendar of bank holidays in accordance with the Negotiable Instruments Act, 1881. Banks maintain regular operations on the first, third, and fifth Saturdays of each month while remaining closed on second and fourth Saturdays, along with all Sundays.

Customer Advisory

Customers are advised to confirm branch timings before visiting, as operating hours may vary across different locations. The RBI's official holiday calendar provides comprehensive guidance on service availability, and customers can contact their local branch directly for specific queries regarding holiday schedules and service accessibility.