AI Evaluation Notes

Fundraising costs for Indian companies showed a mixed but generally supportive trend towards becoming cheaper. The Reserve Bank of India (RBI) lowered its key repo rate by 25 basis points in December 2025, which typically leads to lower borrowing costs for financial institutions and subsequently for corporates. Additionally, buoyant equity financial markets were reported to be pushing down the cost of equity for companies raising capital. While government bond yields showed some slight increases towards the end of 2025, corporate bond yields were observed to be compressed in April 2025, suggesting a reduction in debt costs during that period. The overall environment, especially with the RBI's policy action, points to a general trend of cheaper fundraising, aligning partially with the prediction.