📰You Can Now Trade Indian Bonds Directly

Good afternoon, 

Welcome to the best way to stay up-to-date on India’s financial markets. Here’s what’s in today’s newsletter:

• India to boost renewable energy trading,

• HZL to invest $1.39 billion (₹120 billion) to expand its refined metal production capacity,

• and MarketAxess Holdings has launched a new platform to allow foreign investors to trade Indian government bonds directly.

Then, we close with Gupshup, a round-up of the most important headlines.

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—Shreyas, [email protected]

Market Update.

India to Boost Renewable Energy Trading.

India’s electricity market is about to change in a big way: the country’s top energy regulator, the Central Electricity Regulatory Commission (CERC), has proposed a new rule that could reshape how companies buy renewable energy—without actually receiving any power.

The proposal introduces something called Virtual Power Purchase Agreements (VPPAs). Think of them like financial contracts: instead of buying electricity directly, companies agree on a fixed price for renewable energy with a generator. That generator sells the power on the open market, and the company either pays or gets paid the difference between the market price and the agreed price. No wires, no transmission—just a financial transaction that helps companies meet their clean energy targets on paper.

This matters because large corporations are under growing pressure to go green, and VPPAs could make that easier. But there’s a catch: critics warn that these deals might let companies look clean without actually changing where their energy comes from.

The draft rules also propose more government oversight of energy trading platforms, and there’s growing interest from India’s big stock exchanges—like NSE and MCX—to launch power-related financial products, which could create new investment opportunities in the energy space.

CERC is accepting public feedback on these proposed changes until July 14. For investors, especially those tracking the clean energy transition or ESG trends, this could be the start of a more liquid and sophisticated power market in India—one where financial tools play a bigger role in how energy is bought and sold.

Hindustan Zinc Approves Major Investment in Boosting Indian Output.

Hindustan Zinc Limited (HZL) has announced a massive investment of $1.39 billion (₹120 billion) to significantly expand its refined metal production capacity, aiming to double output within five years.

As part of the first phase of this expansion, the company will add 250 kilotonnes per annum (KTPA) of integrated refined metal capacity. This includes the construction of a new smelter in Debari, Udaipur (Rajasthan), and parallel enhancements to its mining and milling capacity.

Currently producing about 1.1 million tons of refined metal annually, the expansion will take HZL’s capacity to over 2,000 KTPA, while also raising silver production to 1,500 tons per year. The entire project is expected to be completed in 36 months.

The expansion is in line with forecasts from the International Zinc Association, which predicts a doubling of India’s zinc demand in 5–10 years, driven by rapid infrastructure growth and rising steel consumption.

“This 2x growth project is aligned with the expanding economic landscape the country is experiencing, facilitating the demand increase in zinc, lead, and silver,” said Arun Misra, CEO of Hindustan Zinc.

This move also supports India’s broader goals of achieving self-reliance in zinc production and increasing exports amid a global supply deficit. Hindustan Zinc, a Vedanta Group company since the government’s disinvestment in 2002, remains one of the world’s lowest-cost zinc producers and holds the second-largest zinc reserves globally.

The strategic investment positions HZL to capitalize on both domestic growth and international demand in the coming years.

You Can Now Trade Indian Government Bonds Directly.

MarketAxess Holdings, a U.S.-based electronic trading firm, has launched a new platform that enables foreign investors to trade Indian government bonds directly, a first for India’s fixed-income markets.

The platform is integrated with the Clearing Corporation of India’s NDS-Order Matching system, which is typically used by domestic investors. This integration means foreign investors can now bid and offer government securities on equal footing with local players.

“It will provide direct access to foreign investors and the post-trading tasks will be much more enhanced and efficient,” said Riad Chowdhury, Head of Asia-Pacific at MarketAxess.

The launch is expected to streamline regulatory and operational hurdles. MarketAxess says it simplifies pre-trade eligibility checks and speeds up post-trade processing, making Indian bonds more attractive to global investors.

This comes at a pivotal time: India was added to JPMorgan’s Emerging Market Debt Index in June 2024 and Bloomberg’s EM Local Currency Index in January 2025. As a result, foreign interest in Indian debt has surged. Between July and March, investors bought $13.98 billion (₹1.2 trillion) worth of bonds under the Fully Accessible Route, which includes many securities listed in global indices.

MarketAxess, which already offers access to 29 emerging markets and serves around 1,400 clients, believes this move could boost bond trading volumes in India by improving liquidity and making the market more attractive to institutional investors seeking seamless execution.

With this platform, India’s debt market takes a step closer to deeper integration with global capital flows.

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Gupshup.

Macro

• Indian farmers have expanded sowing of rice, pulses, and sugar cane, with rice acreage up 13.3 percent and pulses up 18 percent year-on-year. This increase comes despite a 17 percent shortfall in monsoon rains, with corn planting down and overall crop area slightly higher than last year.

• India’s Energy Index is struggling at a key resistance level as rising oil prices driven by the Israel-Iran conflict create market uncertainty. While higher crude prices threaten earnings and valuations, the energy index’s typical inverse relationship with oil and stable crude below yearly highs may help it hold ground.

• Russian LPG producer Sibur has doubled its LPG shipments and resumed supply to India. The shipment increase is through the Baltic port of Ust-Luga in the first five months of 2025 compared to 2024, reaching 418,000 metric tons. This increase was supported by securing new medium gas carrier tankers capable of transporting up to 20,000 tons each.

Equities

• India’s NSE will shift all derivatives expiries to Tuesday starting Sept. 1, following regulatory approval. The move ends a turf war with rival BSE, which received similar approval to shift expiries to Thursday, as both exchanges compete for dominance in the booming derivatives market.

• SoftBank-backed Lenskart is preparing to file for a $1 billion (₹86.3 billion) IPO in the coming weeks, potentially valuing the eyewear company at around $10 billion (₹863.2 billion). The move follows its recent conversion to a public limited company and reflects growing momentum among Indian firms to go public amid a market rebound.

• Blackstone-backed Knowledge Realty Trust plans to launch a $558 million (₹48.2 billion) IPO in July, potentially marking India’s fifth REIT listing. The offering follows a $162.2 million (₹14 billion) pre-IPO allotment and aims to repay debt, as the trust highlights strong financials with $6.9 billion (₹594 billion) in assets and 90 percent occupancy.

• MakeMyTrip is seeking to raise over $2 billion (₹172.7 billion) through share and convertible bond sales to buy back part of Trip.com Group’s stake, aiming to reduce Trip.com’s voting power from 45.34 percent to 19.99 percent. The move follows a share price decline this year and involves issuing 14 million new shares plus $1.25 billion (₹107.9 billion) in zero-coupon convertible bonds.

• Indian shares dipped as U.S. President Trump's warning to Iranians to evacuate Tehran heightened fears of a wider Middle East conflict amid ongoing Israel-Iran tensions. Investors remain cautious, uncertain about how geopolitical and trade issues will impact markets.

• India's P N Gadgil Jewellers launched Litestyle, a sub-brand focused on lightweight and lower-carat jewellery, responding to rising gold prices. This move aims to attract consumers seeking more affordable options amid soaring gold costs without a matching increase in their budgets.

Alts

• India’s Multi Commodity Exchange plans to launch electricity futures later this year after securing regulatory approval from SEBI. The move aims to help energy players hedge price risks amid rising renewable volatility, mirroring global growth in power derivatives trading.

• India’s markets regulator SEBI barred former IIFL Securities executive Sanjiv Bhasin from trading for allegedly making misleading stock recommendations. Bhasin is accused of buying shares and promoting them on TV and social media to manipulate the market.

Policy

• India has expanded its nuclear arsenal to 180 warheads and is shifting toward positioning them closer to missile systems, according to a new SIPRI report. The modernization effort, including longer-range capabilities, signals a growing focus on China even as tensions with Pakistan persist.

• Indian Prime Minister Narendra Modi missed a key opportunity to advance a US trade deal after President Trump left the G-7 summit early. The canceled meeting delays crucial political direction ahead of a July 9 tariff deadline, though Modi is still set to meet other global leaders during his trip.

• RBI Governor Sanjay Malhotra clarified that future rate cuts remain possible if inflation falls below forecasts, countering market confusion after a shift to a neutral policy stance. His comments aim to reassure investors that the stance reflects flexibility to support growth, not a halt in easing, and that future moves will be data-dependent.

See you Wednesday.

Written by Yash Tibrewal. Edited by Shreyas Sinha.

Disclaimer: This is not financial advice or recommendation for any investment. The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.