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Informist, Thursday, Sep 5, 2024

By Vaishali Tyagi 

MUMBAI – Yields on corporate bonds in the secondary market were confined to a narrow range today as investors engaged in only requirement-based trading, dealers said. "The market is currently experiencing a dry situation, as supply is matching demand from buyers, limiting any significant movement. Unless there's a surge in demand, it's unlikely that yields will shift," a dealer at a mid-sized brokerage firm said.

Not much is happening in the fixed-income market, dealers said, adding that traders are holding off moves, awaiting some action in the Indian government bonds market, which is currently stuck in a thin band. "There's nothing driving the corporate bond market, so traders have no reason to take a position or make any bets," a dealer at mid-sized brokerage firm said.

In the secondary market of corporate bonds today, mutual funds stuck to churning their portfolios and banks were said to be buying and selling papers at the shorter end of the curve. Most other players stuck to the sidelines, which led to a drop in volumes, dealers said.

Deals aggregating to 79.25 bln rupees were recorded today on the National Stock Exchange and BSE combined, compared with 75.95 bln rupees on Wednesday. Papers issued by Indian Railway Finance Corp, Andhra Pradesh State Beverages Corp, Uttar Pradesh Power Corp, Shriram Finance, Muthoot Fincorp, Navi Finserv, Spandana Sphoorty Financial, AYE Finance were traded the most on the exchanges.

In the primary market, Bank of Baroda plans to raise up to 50 bln rupees through an infrastructure bond maturing in 10 years on Friday. On Aug 26, the state-owned bank raised 50 bln rupees through a 10-year infrastructure bond at a coupon of 7.30%. Indian Renewable Energy Development Agency will also tap the market to raise 15 bln rupees through bonds maturing in 15 years.

"Market participants will look for BoB's (Bank of Baroda's infrastructure bond) infra bond tomorrow (on Friday), and it is expected that there will be a good number of bids and the coupon is expected around 7.25%," a dealer at a mid-sized brokerage firm said. "People are this time coupon to be better than the last time." 

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating 371.00 mln rupees were traded at a weighted average yield of 7.0501-7.3472%, data from the Reserve Bank of India's Negotiated Dealing System–Order Matching System showed.

* 124.50 mln rupees of Rajasthan's June 2025, June 2026, and March 2026 bond were traded at 7.1000-7.3185%

* 52.00 mln rupees of Punjab's March 2026 and March 2030 bond were traded at 7.2811-7.3276%

* 53.30 mln rupees of Uttar Pradesh's March 2029, March 2025, March 2027 bond were traded at 7.2634-7.3201%

* 40.20 mln rupees of Haryana's March 2026, and June 2026 bonds were traded at 7.3108-7.3400%

* 63.00 mln rupees of Madhya Pradesh's March 2025 bonds was traded at 7.0501%

* 18.00 mln rupees of Himachal Pradesh's February 2030 bonds were traded at 7.2993%

* 12.00 mln rupees of Tamil Nadu's March 2029 and February 2027 bonds were traded at 7.3008-7.3029%

* 8.00 mln rupees of Chhattisgarh's March 2026 and March 2029 bond were traded at 7.3011-7.3472%

BENCHMARK LEVELS FOR CORPORATE BONDS: 

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

With inputs from Ashna Mariam George

Edited by Avishek Dutta

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