India Corporate Bonds
Subdued participation keeps yields flat
This story was originally published at 23:00 IST on 19 August 2024
Register to read our real-time news.Informist, Monday, Aug 19, 2024
By Vaishali Tyagi
MUMBAI – Yields on corporate bonds ended steady in the secondary market today owing to subdued participation from market players, dealers said. Only a few mutual funds and banks were said to have been active on both the buying and selling sides, while other traders were absent from the market today, they said.
Today, thin participation kept trade volume subdued, with deals aggregating 90.05 bln rupees being recorded on the National Stock Exchange and BSE combined. "There were not many trades happening today and, therefore, there was less activity in the market. It was broadly dull due to a smaller number of participants as most were on leave today," a dealer at a large-sized brokerage firm said. There were few traders in the market today on account of Raksha Bandhan.
Papers issued by Power Finance Corp, REC, Hella Infra Market, Indiabulls Housing Finance, Navi Finserv, Uttar Pradesh Power Corp, Muthoot Fincorp, HDB Financial Services, Creditaccess Grameen were traded the most on the exchanges.
In the primary market, Tata Chemicals Ltd raised 17 bln rupees through bonds maturing in three years today and at a coupon of 7.81%. The issue was fully subscribed. Shriram Housing Finance also tapped the market to raise 2.25 bln rupees through bonds maturing on Dec 26, 2025 at a fixed coupon of 8.94%.
Investors are keeping an eye on upcoming issuances, especially on Power Finance Corp bond issuance on Tuesday. Power Finance Corp has invited bids to raise up to 35 bln rupees through bonds maturing on Jul 15, 2039. "Demand for PFC will be seen, and I expect the cut-off to be in the range of 7.35-40%," a dealer at another mid-sized brokerage firm said.
According to merchant bankers, several banks and public sector entities are planning to tap the bond market in the coming days. Further, they expect the overall primary market supply to pick up.
BENCHMARK LEVELS FOR CORPORATE BONDS:
TENURE | TODAY | FRIDAY |
Three-year | 7.59-7.60% | 7.59-7.61% |
Five-year | 7.52-7.53% | 7.52-7.54% |
10-year | 7.42%-7.44% | 7.42-7.43% |
End
With inputs from Ashna Mariam George
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
